To assign items to a distribution location, there is an action button on the related purchase order to "add new delivery". Alternatively, you can go to the toolbar on the left and go under transactions then click on "Deliveries". From there you can click on "Add delivery" to the desired purchase order.
Both of these actions will take you to the same screen.
When receiving the items, you will need to mark the quantity received as well as the quantity designated for stock and choose the appropriate distribution location.