Your company can purchase or manufacture some products as product batches - groups of identical products that were produced simultaneously with the same processing conditions.
In FirstBIT ERP, for product batches you can use the functionality of batch tracking. This functionality enables you to assign a special label, batch number, to specific quantity of the product that was purchased or produced and registered based on a single document. Also, you can assign batch numbers to products being transferred for consignment sales, temporary storage at contract warehouses, or for processing.
Setting up the functionality
In FirstBIT ERP, you can set up the functionality of tracking item batches generally for any inventory item.
To turn on the functionality of batch tracking, open the Administration > Settings > Purchasing and Warehouses form and select the Batch Tracking option. Also, consider selecting the Use Date of Batch Origin for Stock Aging Report option if you need to track aging of these items based on the batch origin date.
Then, when creating a particular item which you purchase or produce in batches, open the Warehouses > Master Data > Items form, select the particular item, and on the Accounting Parameters tab, select the Use Batches option for the item. Then, you can specify batch number in each document where the item will be listed.
Note. You must enable this functionality if you sell products received for consignment sales, stock products at contract warehouses, or receive products to your warehouses on contract basis, issue products for processing by subcontractors.
That is, the Batch Tracking option must be selected either the Issue Goods for Consignment Sales option is selected on the Administration > Settings > Sales form or any of the following options are selected on the Administration > Settings > Purchasing and Warehouses form:
- Issue Goods for Processing by Subcontractor
- Receive Goods for Contract Warehousing
- Issue Goods for Consignment Sales
Creating batches
Notice that defining and specifying batches for purchased or manufactured items with batch tracking is optional. However, batch numbers are required for items intended for consignment sales, subcontractor processing, and for those to be stocked in contract warehouses.
Generally, you can define (create) batches for items on receiving these items to warehouses, that is in Invoices Received, Goods Receipt Notes, Productions; also, when entering their beginning balances.
To add a batch, click in the Batch column on the Inventory tab of the document form, then click the Add ( 
) button to the right in the drop-down list of batches. The Item Batch (create) dialog box opens.
The Item Batch (create) dialog box
In the Description field, type a batch name.
Note. It is recommended that you set up certain rules for naming item batches. For example, for items to be used as the entity's own inventory, names can be based on the dates of the batch origin and expiration as "101021-100622" or "OD101021-ED100622". Such batch numbers in selection drop-down lists would help users view which batches have earlier expiration dates when picking the particular units for sale. Consider creating a rule for setting the date of origin - it could be the date of purchase or the date of manufacturing by the product's manufacturer – this date will be used for product batch aging.
For items received as inventory of another company, you can set differing rules. For instance, for items received for subcontractor processing you can use the movement date as the date of origin for batch number ("SP021121").
In the Status field, you can select one of the following options:
- Own Inventory: for items that the entity owns and keeps for sale.
- Safe Custody: for items received to the entity's contact warehouses.
- Commission Materials: for items received for subcontractor processing.
- Consignment Sales: for items intended for consignment sales.
In the Batch Owner field, you can specify the company that owns this batch.
Then select the expiration date if this batch has expiration date.
Using Batches
In any of the listed types of documents, you need to split the quantity of the item by quantities with specific batch numbers.
To specify a batch number for the specified quantity of the item, click in the Batch column on the Inventory tab of the document. Notice that you can select only one batch number for the line.
This opens the following dialog box (the same for all types of documents).
The Item Batches (selection) dialog box
In this dialog box, you can view all the batch numbers that were assigned to the item or the available batches if the Show Only Available Batches option is selected.
Once the batch is chosen, click Select to close the dialog box and use the batch in the document.
With each posted inventory transaction, such as inventory transfer, invoice, goods delivery note, inventory receipt, or write off, the inventory records of the items with batch tracking are updated.
Viewing details on items with batch tracking
To view details on available quantities of inventory with batch tracking, you can use the reports in the Warehouse module.
The Stock Aging report shows information on batches, expired batches, the product average costs and more. The set of report options include the following options:
- Show Average Cost
- Show Totals
- Show Expired Items
- Show Last Sales Date
You can select any options to view the corresponding information in the report.
The Stock Aging report (default variant)
The Stock Balance (by Item) report shows the item available quantities on the specified date. The quantities of items with batch tracking are listed by batch.
The list of items including items with batches available in warehouses
Similarly, the Stock Statement (by Item) report shows the changes in item quantities during the specified period. The changes in quantities of items with batch tracking are shown by batch.
If you need to know the details on items with batches which were transferred, you can use the Balance of Transferred Inventory and Statement of Transferred Inventory reports which list the subcontractor and consignee companies and companies with contract warehouses to which the entity's inventory was moved. The items are listed without batch details.