Importance of Operating Unit Location

Hi,

We have the following setup in our R12.1.3 instance:

1> Operating Unit and Legal Entity - Active

2> Location1 linked to Operating Unit and Legal Entity - Inactive

3> Inventory Org for the above mentioned operating Unit - Active.

4> Location2 linked to the Inventory Org - Active (Location 1 and 2 are different)

Queries:

1> We are creating Bill Only sales orders and AR invoices for the operating unit without any error - Is this possible because the location for the inventory org is active.

2> The inactive location linked to the operating unit/legal entity - which operations/processes will it affect or produce an error.