Assets are located based on a hierarchical tree, the best analogy I can think of is similar to a family tree.  At the root of the tree is generally a building, which in itself is an asset, where all the assets are stored.

Where an asset can store further assets define the storage locations of the asset using the main Storage section when editing an asset, examples are rooms in building, compartments in vehicle, pockets in packs etc...

For each asset use the "Quantites stored" sub section in the main General section to indentify the quantities of the asset and which storage item they are located in other assets.  When using this feature the value of the "Existing Location" field in the "Address where stored" sub location can be set to "<Not applicable>" as the address will be determined by the asset (usually a building) at the root of the hierarchical tree.

Reports can be obtained that itemise all the contents of an asset and where defined the value of the contents of that asset.  There is no limit to the depth of the tree but it is advised to keep this as small as possible to be manageable (read FAQ on sub locations).