Welcome to the topic on serial numbers and batches.

In this topic, we will explore two of the methods for tracking items you purchase, make or sell: serialnumbers and batches.

We will look at how to create and use a batch-managed items.

We will look at how to create items and use items managed with serial numbers.

Imagine that:

Your company would like to more closely track items that they make, buy and sell through theirlifecycle.

Some of the more expensive items, such as laptops and desktop computers, are managed by serialnumbers. Each individual laptop or computer has a serial number so that you can easily track sales andservice for that particular laptop or computer.

Others items, such as printer cartridges, are purchased in lots and are managed by batches in order totrack expiration dates.

Serial numbers can help you track items down to the level of each individual object in your warehouse,so you know exactly which one was sold to a customer.

Serial numbers are also very useful as a way to track service history for a customer’s purchase.

Here are two criteria that can be used to decide if an item should be serialized:

Is the item a high value item?

Should the item be tracked for security or repair reasons?

If the answer to both questions is yes, then the item is a good candidate for serial numbers.

In contrast, batches are used to track a quantity of an item with characteristics in common. Thesecharacteristics might be attributes you define such as a shade of color, granularity or PH balance. Thecharacteristics could be dates, such as expiration dates, manufacturing date, or the date the items werereceived into inventory.

A good example of a batch-managed item would be milk. Each batch of milk has a sell-by date. It isvery important to track this date and make sure the milk is sold before its expiration date.

You have the option to set the serial numbers or batch numbers to be assigned on every transaction orto be assigned on release only.

This is controlled by the “management method” field on the item master record. The two options arecalled “on every transaction” and “on release only”.

If you choose “on every transaction” then you must assign serial number attributes for every single unitat the first point it enters inventory.

Thereafter, the system will prompt you for a serial number on every transaction where the item isissued out of inventory or returned to inventory.

This way you know exactly which objects are in inventory and which objects have been shipped to acustomer.

This method is useful when you need to track the individual objects at all times, and where thereceiving personnel have the appropriate information at the time the units are received.

When you first receive the serialized items into stock, you can choose the option to enter serialnumbers manually or to create serial numbers automatically using a serial number string of yourchoice.

“On release only” means that serial numbers are only required on documents that issue an item out of awarehouse.

Release documents not only include: Goods issue, delivery, A/R invoices and goods issues toproduction, but also inventory transfers between warehouses and return and credit documents.

When you use “On Release Only” at the time of purchase, there is no need to enter serial numberattributes. However, when you remove the item from inventory, the serial numbers for these objectsmust be created first using the Serial Item Management window.

An alternate option is to choose “automatic serial numbering creation on receipt”. When you purchasethe serialized item, the system automatically creates successive numerical serial numbers for thequantity you have purchased. With this option, you can immediately release these objects withoutfurther operations. You can update the serial number attributes at a later stage, using the Serial ItemManagement window. This is especially useful when a large quantity is produced or purchased.

Why might you choose “on release only”?

One example might be if you manufacture an item and would like to issue it into inventory without aserial number. This way, you can wait to assign the serial number until item is picked for delivery.“Release Only” gives you the flexibility to not worry about serial numbers inside the warehouse.

Unlike release documents that issue stock from inventory, serial and batch information is alwaysoptional on sales orders, because sales orders do not have any effect on inventory, except to create acommitment. If you would like this commitment to capture information about a specific serializeditem or specify a batch to be sold, then you can do so in the sales order.

Reserving specific serial numbers or batches at the time of the sales order allows for better control andinventory planning. Perhaps you build some customized computers as special orders for customers. Inthat case, you may wish to designate a serial number in the sales order that will follow the computerthrough the customizing process until the delivery.

This optional assignment is also possible in an inventory transfer request or an A/R reserve invoice.

Once you have allocated the serial number in the sales order, the serial information will be copied totarget documents for picking, delivery or invoicing

After the serial number is assigned to a sales order, you cannot select it for another document, withoutcanceling the serial number allocation in the original document. Closing or canceling the sales orderautomatically cancels its serial number allocation.

When you copy the sales order to a target document, such as a delivery, the Serial Number windowwill open automatically so that you can confirm that this is the serial number you wish to use or youcan update it with a new serial number.

However, once the serialized item leaves the warehouse on a delivery document, you can no longerview or change the serial numbers on an A/R invoice. If a credit memo is created, then you will beable to view the serial number window to confirm or update serial numbers.

In this demonstration on setting up serial numbers, I will create, receive, and sell a serialized item.

In this demonstration on setting up batch numbers, I will create, receive, and sell a batch-manageditem.

You have completed the topic on serial numbers and batch management. Thank you for your time.

Serial numbers track each individual unit of an item.

Batches track a quantity of an item with characteristics in common.

You have the option to set the serial numbers or batch numbers to be assigned on every transaction orto be assigned on release only.

The management method “on every transaction” mandates that you assign serial number attributes forevery single unit at the first point it enters inventory.

“On release only” means that serial numbers are only required on documents that issue an item out of awarehouse.

You can optionally assign serial and batch information on sales orders, inventory transfer requests andA/R reserve invoices.