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What is the significance of warehouse field on Project Contract in Cloud?

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Summary: Want to understand the usage and significance of the warehouse field which is provided at contract header and contract line levels in context of Sell Side - Project Contract. There is also an Item Master field which enables to call the list of items when creating an item-based contract line.

Content (required): We want to understand the usage of warehouse field available at contract header and line. Also, there is an item master field which provides a list of items to be chosen from when creating an item-based contract line. Does this warehouse refer to inventory org and will it further restrict the list of items to be chosen from? Does it validate while submitting the contract if the item selected on contract line belongs to the warehouse selected or it can be any item from item master? Is warehouse attribute only for reporting purposes or is it driving something?

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