Steps:
Go to Provisioning > Edit Attribute Mappings in Azure.
Click Show advanced options > Edit attribute list.
Add:
Name:
urn:ietf:params:scim:schemas:extension:freshservice:2.0:User:_location
Type:
String
Save, return, and map:
Source:
physicalDeliveryOfficeName
Target:
_location
Note: Underscore is required before location