Receiving Lot/Serial Items

This article describes the special steps needed to handle lot/serial inventory. Like all inventory, lot/serial items can be received in three ways: material receipt, manufacturing receipt, and shipping receipt.

Overview

This article describes the special steps needed to handle lot/serial inventory. Like all inventory, lot/serial items can be received in three ways:

  1. Material receipt
  2. Manufacturing receipt
  3. Shipping receipt

Item Site Control Method

To illustrate the receiving process for lot/serial items, we will be tracking item YPAINT1, a yellow paint product found in the demo database. YPAINT1 is a lot-controlled item. While our example focuses on a lot-controlled item, it should be noted that the steps for receiving serial-controlled items are identical—the only difference being that serial number items may be received in quantities of one (1) only. Lot-controlled items may be received in any quantity.

Before we begin, let's examine the item site definition for YPAINT1. To open the YPAINT1 item site, follow these steps:

  • Locate the "Inventory" module from the top menu
  • Go to the "Item Site" submenu
  • Choose the "List" option
  • From the "Item Sites" window, choose YPAINT1 from the list
  • The "Item Site" window for YPAINT1 will open, as shown below:

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Item Site Definition for Lot-Controlled Item

  • Confirm that the "Control Method" in the "Inventory" tab has "Lot #" selected
  • Confirm that "Multiple Location Control" is checked off under the "Location" tab

A few points are worth noting when looking at the YPAINT1 item site definition. First, note that the "control method" is specified as "lot #." This designation marks an item as being lot-controlled, and it is because of this specification that YPAINT1 in warehouse WH1 will be handled differently when quantities of it are received. Another point to notice is that the item is marked as perishable and saleable for a limited period of time. Accounting for the perishable nature of lot-controlled goods will be covered later in this tutorial. Finally, you can see that the item site specifies that "multiple location control" (MLC) is turned on. Distribution issues related to MLC items are covered thoroughly in our tutorial on multiple location control. We will be covering some of that same ground again here when receiving quantities of YPAINT1.

Assigning Lot Numbers

Let's begin by receiving a quantity of 150 units of YPAINT1 into inventory. To process a material receipt, please use the following steps:

  • Go to "Inventory" from the top menu
  • Select the "Transactions" submenu
  • Choose the "Material Receipt" option
  • The "Material Receipt Transaction" window will open as shown below:

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Enter Material Receipt for Lot-Controlled Item

At this point in the process, the "Material Receipt" window looks and behaves no differently than it would for any other item. In the "Item Number" field we enter YPAINT1, specifying a receipt quantity of 150 units. However, since YPAINT1 is a lot-controlled item, the following window appears when we select the POST button:

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Initial Screen for Assigning Lot/Serial Number

As you can see, the assignment window indicates the item number and quantity to be assigned—namely the original quantity being received, 150 units. Keep in mind that you may not exit this sequence once it has been initiated. When receiving lot-controlled items into inventory, you are required to assign lot numbers to some or all of the incoming quantity.

Note: Serial number assignments are made in the same way that lot number assignments are made when receiving goods into inventory. The only difference is that serial numbers may be assigned to only one (1) item at a time. Lot numbers may be assigned to any quantity.

To create a lot number, we select the NEW button. The following screenshot shows the "Create Lot/Serial #" window, with the previous referring screenshot that brought us to this point shown in the background:

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Create Lot/Serial Number

When creating a lot or serial number for incoming quantities, you are presented with the following options:

  • Lot/Serial #: Enter a lot or serial number to identify the specified quantity.

Info: Lot or serial numbers may be changed at a later point using the "Reassign Lot/Serial Number" window found in the "Inventory Transactions" section of the inventory menu module.

  • Expiration Date: Perishable items are assigned an expiration date using this field. Specify the date on or after which the item should be considered expired. If a "Lot/Serial" item is not perishable, then an expiration date does not apply. Items are designated as perishable or not in the item site definition.
  • Qty. to Assign: Specify the quantity to assign to the specified lot or serial number. For serial number items, you may only assign one serial number per item. Fractional quantities may be assigned to lot numbers, only if the item in question may be stored in fractional quantities, as specified in the item master.

Note: Incoming quantities may be assigned to multiple lot or serial numbers. The entire incoming quantity does not have to be assigned the same number.

To the far right of the window, the following buttons are available:

CANCEL: Closes the window without creating a lot or serial number.

OK: Assigns the specified quantity to the indicated lot or serial number.

Although it is not necessary to do so, we have decided for this example to assign the entire incoming quantity of 150 units to lot number LOT-2. This designation is confirmed in the following screenshot:

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Lot Number Assigned to Lot-Controlled Quantity

Distributing to Multiple Locations

To complete the lot number assignment sequence, we select the OK button; however, we are not done yet. Since YPAINT1 is an MLC item, the following distribution sequence is triggered:

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Multiple Location Distribution of Lot-Controlled Quantity

Note: For an in-depth discussion covering the distribution of multiple location control items, see our tutorial on multiple location control.

Noting that the quantity to distribute is the full 150 units, we select the DEFAULT AND POST button. Selecting this button automatically causes the full quantity to be distributed to the default location. The transaction is now complete. We have successfully assigned a lot number to the 150 yellow paint units, specified an expiration date, and received the full quantity into inventory. To verify the result, we open the inventory module display, "Location/Lot/Serial # Detail," which can be done by following these steps:

  • Go to the "Inventory" module from the top menu
  • Select the "Reports" submenu
  • Choose the "Location/Lot/Serial # Detail" option:

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Verify Lot Transaction Using Detail Display

As you can see in the example, warehouse WH1 is showing 150 units of LOT-2 with the specified expiration date. Previously entered lots are also displayed here, as you can see.

Receiving from Shipping

When lot-controlled items are purchased using a purchase order, they are received into inventory via the inventory receiving process. Our next example illustrates how this works. Let's begin in the receiving section of the Inventory module.

To open the "Enter Order Receipts" window use the following steps:

  • Go to "Inventory" from the top menu
  • Select the "Receiving" submenu
  • Choose the "New Receipt" option
  • The "Enter Order Receipts" window will open, as shown below:

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Receiving Lot-Controlled Quantity

  • In the "Order #" box, enter the number of the purchase order you are receiving (i.e., order #20174 in our example)
  • As you can see, YPAINT1 is the only line item on this particular purchase order

At this point in the process, the "Enter Order Receipts" window looks and behaves no differently than it would for any other item. As expected, the following window, "Enter Item Receipt," opens when we highlight the purchase order item and select the ENTER RECEIPT button:

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Enter Purchase Order Item Receipt for Lot-Controlled Item

For this example, we specify that 300 units were received. After the OK button is selected, we are brought back to the initial receiving window, as shown below:

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Receipt Entered for Lot-Controlled Quantity

It is when we select the POST button that the special lot-controlled sequence begins, as shown in the following screenshot:

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Create Lot Number for Quantity Received

The process from this point forward is identical to the process described in the earlier material receipt example. We assign a lot number to the specified quantity, and then, because item YPAINT1 is a multiple location control item, we go through the MLC distribution cycle. To verify the results, we can open the inventory module window, "Location/Lot/Serial # Detail," as shown in the following screenshot:

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Verify Lot Receipt Using Detail Display

As you can see in the example, the location #01010101 in warehouse "WH1" is now showing the assigned units of LOT-5 with the specified expiration date. The lot-controlled goods have been successfully assigned and received into inventory. 

Receiving from Manufacturing

YPAINT1 is a purchased item, not a manufactured one. So, we can't use YPAINT1 to demonstrate how lot-controlled items are received from manufacturing. However, we'll make the manufactured item YTRUCK1 into a lot-controlled item and use it in the following example.

You receive manufactured items into inventory when you post production. To open the "Post Production" window, use the following steps:

  • Locate the "Manufacture" module from the top menu
  • Go to the "Transactions" submenu
  • Choose the "Post Production" option
  • Select a "Work Order #" and enter in a "Qty. to Post"

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Create Lot Number for Quantity Received from Manufacturing

As you can see in the example, the now familiar lot number assignment sequence is triggered ad becomes part of the work order production posting process for this lot-controlled item.