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Lot Tracking

This comprehensive guide explains how to implement and manage lot tracking in your inventory system, covering lot creation, FEFO allocation, expiration management, and complete traceability. Written for all users — accountants and non‑accountants — it provides practical guidance for industries requiring detailed product traceability.

What is Lot Tracking?

Lot tracking is a comprehensive system that assigns unique identifiers to batches of products, enabling complete traceability from supplier to customer while managing expiration dates and ensuring proper rotation of perishable goods.

  • Unique Identification: Each lot has a unique code for complete traceability
  • Expiration Management: Track expiration dates and automate FEFO allocation
  • Forward/Backward Traceability: Track products from source to destination and vice versa
  • Compliance Support: Meet regulatory requirements for product recalls and audits
  • Quality Control: Associate quality data and certifications with specific lots
  • FEFO Automation: First Expired, First Out allocation for optimal rotation

Accounting Purpose: Lot tracking provides the detailed audit trails required for regulatory compliance while ensuring accurate inventory valuation and cost tracking at the lot level.

System Requirements

Product Configuration

  • Lot Tracking Enabled: Products must have lot tracking activated
  • Expiration Tracking: Optional expiration date management
  • Lot Code Format: Standardized lot code naming conventions
  • Quality Parameters: Optional quality attributes per lot

Prerequisites

  1. Product Setup: Products configured for lot tracking
  2. Location Structure: Warehouse locations for lot storage
  3. User Training: Staff trained on lot handling procedures
  4. Compliance Framework: Understanding of regulatory requirements

Where to find it in the UI

Navigate to Inventory → Lots

Lot tracking also appears in:

  • Stock Movements: Lot selection and allocation during movements
  • Product Details: Lot history and current lot quantities
  • Stock Quantities: Stock levels broken down by lot
  • Reports: Lot traceability and expiration reports
  • Vendor Bills: Lot assignment during receipt processing
  • Customer Invoices: Lot consumption during delivery processing

Tip: The header's Help/Docs button opens this guide.

Enabling Lot Tracking

Product Configuration

Navigate to Inventory → Products → Select Product → Edit

Step 1: Enable Lot Tracking

  • Track Lots: Check the enable checkbox
  • Lot Generation: Choose manual or automatic lot code generation
  • Expiration Tracking: Enable for perishable goods
  • Quality Tracking: Enable for products requiring quality data

Step 2: Lot Code Configuration

  • Naming Convention: Define lot code format (e.g., LOT-YYYY-MM-###)
  • Auto-generation: Set up automatic lot code creation rules
  • Validation Rules: Define lot code validation requirements

Step 3: Expiration Settings

  • Default Shelf Life: Standard expiration period for new lots
  • Warning Period: Days before expiration to trigger alerts
  • FEFO Priority: Enable automatic FEFO allocation

Creating and Managing Lots

Manual Lot Creation

Navigate to Inventory → Lots → Create Lot

Step 1: Basic Lot Information

  • Lot Code: Unique identifier (e.g., LOT-2024-001)
  • Product: Associated product (must have lot tracking enabled)
  • Creation Date: Date the lot was created or received
  • Expiration Date: When the lot expires (if applicable)

Step 2: Supplier Information

  • Supplier: Vendor who provided the lot
  • Supplier Lot Code: Vendor's internal lot reference
  • Purchase Order: Associated purchase order reference
  • Certificate Number: Quality certificate reference

Step 3: Quality Data

  • Quality Grade: Product quality classification
  • Test Results: Laboratory test results
  • Certifications: Regulatory certifications
  • Notes: Additional quality or handling notes

Automatic Lot Creation

Lots are automatically created during:

Vendor Bill Processing:

  • Receipt Movements: New lots created for incoming stock
  • Lot Assignment: Based on bill line details
  • Expiration Calculation: Using product's default shelf life

Production Orders:

  • Manufactured Lots: New lots for produced goods
  • Component Consumption: Tracking which lots were used in production
  • Quality Inheritance: Quality data from component lots

FEFO (First Expired, First Out) Management

Automatic FEFO Allocation

The system automatically suggests FEFO allocation for lot-tracked products:

Allocation Logic:

  • Expiration Priority: Lots closest to expiration are consumed first
  • Quality Considerations: Higher quality lots may override expiration priority
  • Customer Requirements: Specific customer lot requirements
  • Minimum Shelf Life: Ensure adequate remaining shelf life for customers

Override Capabilities:

  • Manual Selection: Choose specific lots when needed
  • Quality Override: Select higher quality lots over expiration priority
  • Customer Specific: Allocate specific lots for customer requirements

Expiration Monitoring

Expiration Alerts:

  • Warning Notifications: Alerts before lots expire
  • Dashboard Widgets: Visual indicators of expiring lots
  • Report Generation: Regular expiration reports
  • Automatic Actions: Optional automatic actions for expired lots

Expiration Handling:

  • Quarantine: Move expired lots to quarantine locations
  • Disposal: Process disposal of expired products
  • Return to Vendor: Return expired products to suppliers
  • Retest: Extend expiration dates after quality retesting

Lot Movement Processing

Incoming Movements with Lots

Receipt Processing:

  1. Select Product: Choose lot-tracked product
  2. Lot Assignment: Assign to existing lot or create new lot
  3. Quantity Allocation: Specify quantity for each lot
  4. Expiration Date: Set or calculate expiration date
  5. Quality Data: Enter quality information

Lot Splitting:

  • Partial Receipts: Split vendor lots into multiple internal lots
  • Quality Segregation: Separate lots by quality grades
  • Location Distribution: Distribute lots across multiple locations

Outgoing Movements with Lots

Delivery Processing:

  1. Quantity Required: Specify total quantity needed
  2. FEFO Suggestion: System suggests optimal lot allocation
  3. Lot Selection: Confirm or modify lot selection
  4. Partial Consumption: Handle partial lot consumption
  5. Remaining Quantities: Update remaining lot quantities

Lot Consolidation:

  • Multiple Lots: Combine multiple lots for single shipment
  • Quality Matching: Ensure consistent quality across lots
  • Expiration Alignment: Group lots with similar expiration dates

Lot Traceability

Forward Traceability

Track where lot quantities went:

Customer Deliveries:

  • Delivery Records: Which customers received specific lots
  • Quantity Tracking: How much of each lot was delivered
  • Date Tracking: When deliveries occurred
  • Invoice References: Associated invoice numbers

Internal Usage:

  • Production Consumption: Which lots were used in manufacturing
  • Transfer History: Internal movements between locations
  • Adjustment Records: Any quantity adjustments

Backward Traceability

Track where lot quantities came from:

Supplier Information:

  • Original Supplier: Who provided the lot
  • Receipt Details: When and how much was received
  • Purchase Order: Associated procurement documents
  • Quality Certificates: Original quality documentation

Production History:

  • Component Lots: Which lots were used to produce this lot
  • Production Date: When the lot was manufactured
  • Process Parameters: Manufacturing conditions and settings
  • Quality Control: Production quality test results

Complete Lot History

Navigate to Inventory → Lots → Select Lot → View History

Movement Timeline:

  • Chronological Order: All movements in date order
  • Quantity Changes: How quantities changed over time
  • Location History: Where the lot has been stored
  • Document References: Associated documents for each movement

Lot Reporting

Lot Traceability Reports

Navigate to Inventory → Reports → Lot Traceability

Report Parameters:

  • Lot Selection: Specific lots or date ranges
  • Product Filter: Specific products or categories
  • Direction: Forward, backward, or complete traceability
  • Detail Level: Summary or detailed movement history

Report Contents:

  • Lot Details: Lot codes, expiration dates, quantities
  • Movement History: Complete movement timeline
  • Document References: Associated purchase orders, invoices, etc.
  • Quality Data: Quality grades and test results

Expiration Reports

Navigate to Inventory → Reports → Lot Expiration

Expiration Analysis:

  • Expiring Soon: Lots approaching expiration
  • Expired Lots: Lots past expiration date
  • Shelf Life Remaining: Days until expiration
  • Value at Risk: Financial value of expiring inventory

Action Planning:

  • Priority Lists: Lots requiring immediate attention
  • Disposal Planning: Lots requiring disposal
  • Customer Allocation: Lots suitable for specific customers
  • Retest Candidates: Lots eligible for shelf life extension

Quality Management

Quality Attributes

Standard Attributes:

  • Grade: Quality classification (A, B, C, etc.)
  • Purity: Percentage purity or concentration
  • Moisture Content: Moisture percentage
  • pH Level: Acidity/alkalinity measurement

Custom Attributes:

  • Industry-Specific: Attributes specific to your industry
  • Customer Requirements: Attributes required by specific customers
  • Regulatory Parameters: Attributes required for compliance
  • Process Parameters: Manufacturing or handling conditions

Quality Certificates

Certificate Management:

  • Upload Documents: Attach quality certificates to lots
  • Certificate Numbers: Track certificate reference numbers
  • Validity Periods: Monitor certificate expiration dates
  • Compliance Status: Track regulatory compliance status

Best Practices

1. Lot Code Management

  • Consistent Naming: Use standardized lot code formats
  • Meaningful Codes: Include date, product, or supplier information
  • Unique Identification: Ensure lot codes are never duplicated
  • Barcode Integration: Use barcodes for efficient lot scanning

2. Expiration Management

  • Regular Monitoring: Check expiration dates regularly
  • FEFO Compliance: Follow FEFO allocation consistently
  • Customer Communication: Inform customers of expiration dates
  • Disposal Procedures: Establish clear disposal procedures

3. Quality Control

  • Documentation: Maintain complete quality documentation
  • Regular Testing: Perform regular quality testing
  • Trend Analysis: Monitor quality trends over time
  • Supplier Feedback: Provide quality feedback to suppliers

4. Traceability Maintenance

  • Complete Records: Maintain complete movement records
  • Document Retention: Keep all supporting documents
  • Regular Audits: Perform regular traceability audits
  • System Backups: Ensure traceability data is backed up

Troubleshooting

Common Issues

Q: Why can't I select a specific lot for a movement? A: Check that the lot exists in the source location with sufficient available quantity. Also verify that the lot hasn't expired if expiration checking is enabled.

Q: Why is the system not suggesting FEFO allocation? A: Ensure that FEFO is enabled for the product and that lots have expiration dates. Check that there are multiple lots available with different expiration dates.

Q: How do I handle partial lot consumption? A: The system automatically handles partial consumption by updating the remaining quantity in the lot. The lot remains active until fully consumed.

Q: Can I change a lot's expiration date after creation? A: Yes, but this should be done carefully and with proper authorization. Document the reason for the change and any quality retesting performed.

Lot tracking provides the detailed traceability and quality management capabilities essential for industries with regulatory requirements, quality standards, or customer traceability demands.