Product Lots and Lot Handling Guide

Use this guide to set up lot-tracked items, create product lot records, allocate lot quantities on customer invoices, sales receipts, and POS, adjust lot stock, and review expiry and traceability.

What Lot Handling Means

A product lot is a batch of the same item. A lot normally has a lot number, item, quantity, vendor, expiry date, best before date, production date, and status. Lot handling helps users know which batch was received, which batch was sold, and which batches are still on hand.

Simple rule: one lot can contain many units. If the document line quantity is 20, the user can allocate all 20 units from one lot or split the quantity across several lots.

Lot handling is especially important for expiry control, product recalls, batch traceability, and vendor follow-up.

Where to find it

Path: Inventory > Product Lots, or open an item and use the Product Lots tab.

Use this path from the main QBM window. If the command is not visible, confirm that the user has access to the related module and permission for that screen.

Lot Tracking Vs Serial Tracking

Tracking Type How It Works Typical Use
Normal item QBM tracks total item quantity only. General stock, office supplies, non-traceable items.
Serial item Each physical unit has one unique serial number. Electronics, equipment, machines, warranty items.
Lot item Each batch has a lot number and quantity. Quantity can be split between lots. Food, medicine, cosmetics, chemicals, spare parts by batch.

When To Use Product Lots

Use product lots when the business must know which batch of an item was bought, stored, sold, or returned.

Use Product Lots When Do Not Use Product Lots When
The item is received and sold in batches. Each individual unit needs its own identity. Use serial numbers instead.
The item has expiry, best before, or production dates. The business only needs total stock quantity.
Customers, suppliers, or authorities may ask which batch was sold. The item is not traceable by batch and has no expiry or recall requirement.

Before You Start

Lot features appear only when the company, edition, and user security allow item tracking and product lots.

Check What To Confirm
Company inventory options Product lots must be enabled in inventory options.
Edition The QBM edition must include item tracking.
User security The user must have permission to open item details, product lots, sales documents, or POS as needed.
Item setup The item must be saved with Track set to Product Lot.
If the Product Lots menu or tab is missing, check inventory options first, then security permissions, then the item tracking field.

Create A Lot Item

Lot tracking starts from the item record. Create the item first, then create lot records for that item.

  1. Open the item list and create a new item, or open the item that should be tracked by product lot.
  2. On the General tab, enter the item name, code, UPC/SKU, lookup code, unit, and the normal sales or purchase information required by your company.
  3. In the item tracking area, set Track to Product Lot.
  4. Save the item. After saving, the Product Lots tab becomes available on the item record.
Important: do not use product lots as a replacement for categories, brands, or departments. Lots are for batch traceability and stock movement, not general item grouping.

Create Product Lot Records

A lot record identifies one batch of a lot-tracked item. It can be created from the product lot list or from the product lots tab on the item record.

  1. Open Inventory > Product Lots, or open the item and use the Product Lots tab.
  2. Create a new lot.
  3. Select the lot-tracked item.
  4. Enter the Lot Number. This is required.
  5. Enter the vendor, expiry date, production date, best before date, rate, and note if they apply.
  6. Save the lot record.
Date Field How Users Should Use It
Production Date The date the batch was produced or manufactured.
Best Before Date The recommended date for best product quality.
Expiry Date The date after which the batch should not be sold or used according to company policy.
Keep dates in a logical order. Production date should normally be before best before and expiry dates, and best before should normally be before or equal to expiry.

Allocate Lots On Sales Documents

When a lot-tracked item is sold, QBM needs to know which lot supplied the quantity. The total allocated lot quantity must match the document line quantity.

  1. Create or open a Customer Invoice or Sales Receipt.
  2. Add the lot-tracked item to the document line.
  3. Set the line quantity.
  4. Open the line menu or right-click the line and choose Product Lots....
  5. Select one or more lots and enter the quantity taken from each lot.
  6. Use the required and remaining quantity information to make sure the allocation matches the line quantity.
  7. Choose OK, then save the document.
Sales Area Lot Behavior
Customer Invoice Lot quantity must match the invoice line quantity. The invoice can print lot details when Print Product Lots is selected.
Sales Receipt Lot quantity must match the receipt line quantity. The receipt can print lot details when Print Product Lots is selected.
Split quantity A single line quantity can be split across multiple lots when stock is available in more than one batch.

Use Lots In POS

POS also requires lot allocation for lot-tracked items. This protects stock accuracy and makes sure the correct batch is reduced when the receipt is completed.

  1. Add or scan the lot-tracked item in POS.
  2. Open the line menu for the item and choose Product Lots....
  3. Select the lot or lots being sold.
  4. Enter the quantity for each lot and confirm that the total matches the line quantity.
  5. Complete the POS sale.
For POS returns or refunds, choose the lot information that matches the returned quantity so the stock movement remains traceable.

Adjust Lot Quantity

Use lot adjustment only when a lot quantity needs correction outside the normal purchase, sale, refund, or transfer workflow.

  1. Open the lot-tracked item.
  2. Go to the Product Lots tab.
  3. Select the lot that needs correction.
  4. Choose Adjust....
  5. Select the location and enter the new quantity, increased quantity, or decreased quantity according to the adjustment needed.
  6. Add a clear note explaining why the adjustment is being made.
  7. Save the adjustment.
Lot adjustments affect stock traceability. Use them carefully and keep the note clear enough for audit review.

Review Lots And Reports

Use product lot lists and reports to monitor batches, expiry exposure, and lot movement.

Screen Or Report Use It To
Product Lots tab on Item Details Review lots for one item and filter by status.
Inventory > Product Lots Open the full product lot list and search across lots.
Product Lots List Review lot master details such as lot number, item, vendor, and expiry information.
Product Lot On Hand Review current quantity by lot and location.
Product Lots Aging Review lots by age or expiry exposure.
Product Lots Transactions Review the movements that increased or decreased lot quantity.

Important Fields

Field Meaning For Users
Lot Number The batch number used to identify the lot. This field is required.
Item The lot-tracked product connected to the lot.
Status The current state of the lot record, such as active or inactive according to company setup.
Vendor The supplier connected to the lot, if recorded.
Expiry Date The expiry date for the lot.
Best Before Date The date used for best quality or recommended sale/use before expiry.
Production Date The date the batch was produced.
Rate An optional lot rating or ABC/rate value used by the company.
Location The store or location where the lot quantity is available.
Quantity The quantity allocated, adjusted, received, sold, returned, or available for the lot depending on the screen.
Note Extra information about the lot or adjustment.

Troubleshooting

Message Or Issue What It Usually Means What To Do
The Product Lots menu is missing. Product lots may not be enabled, the edition may not include item tracking, or the user may not have permission. Check inventory options, edition, and security group permissions.
The Product Lots tab is missing on the item. The item may not be saved yet, or Track is not set to Product Lot. Save the item, then confirm the Track field is set to Product Lot.
QBM says the product lot quantity is not correct. The total quantity allocated to lots does not match the document line quantity. Open Product Lots... and make the allocated quantity equal to the line quantity.
The lot does not appear in selection. The lot may belong to another item, may not have quantity in the selected location, or may be filtered by status. Check the item, location, status filter, and lot on-hand report.
A date warning appears. The production, best before, or expiry dates may be in the wrong order. Review the dates and save again.

Best Practices

  • Use lot tracking only for items that need batch, expiry, or recall traceability.
  • Enter lot numbers exactly as shown on supplier documents or packaging.
  • Record expiry, best before, and production dates consistently.
  • Train sales and POS users to allocate lots before saving the document.
  • Use clear notes for manual lot adjustments.
  • Review product lot reports regularly for expiring stock and unusual adjustments.
  • Do not mix product lots with serial numbers on the same item. Choose the tracking type that matches the item.