If you need to track the movement of stock or are holding quantities on site, then you will need to be using Inventory Items. NetSuite splits Inventory Items into the following subtypes –
- Inventory Items
- Serialized Items
- Lot Numbered Items
What is a Lot Numbered Item?
Lot Numbered items allow you track stock in groups or quantities. An example of this would be a pallet of goods. You need to be able follow the purchase, storage and onward sale of that pallet but you don’t necessarily need to track each quantity separately. Using a Lot Numbered Inventory Item allows you to assign a Lot Number to the pallet and then track all its movements. If a quantity is split off from the main pallet it will maintain the same Lot Number but will leave its own audit trail that may be different to the original group.
Lot Numbered items also allow for the use of an expiry date and a notes section for each lot in the system.
Enabling Lot Numbered Items
If you cannot find the Lot Numbered item type listed on your New Item page (found at Lists > Accounting > Items > New) you may need to enable Lot Tracking. Using an Administrator role follow these steps –
- Navigate to Setup > Company > Enable Features.
- Click the Items and Inventory subtab.
- Mark the checkbox for Lot Tracking.
- Click Save.
Using Lot Numbered Items
When using Lot Numbered Items, you are required to assign a Lot Number to new quantities when they are received or added to stock. This is normally done through an Item Receipt or an Inventory Adjustment. An inventory detail can be configured to record the Lot Number and, if applicable, an expiry date and bin number.
When creating a new Inventory Item you can choose to configure the various unit types to allow more accurate analysis and tracking of quantities. For example, you may purchase particular items as pallets which are made up of 200 bottles. This item, therefore, has a purchase unit of Pallets, a base unit of Bottles and 200 bottles make up a pallet
Lots are fully traceable and a list all transactions they have appeared on is attached to the Lot Number record.
If this is being audited, I would probably advise customizing the standard search here and at a minimum add a quantity column. That way you can clearly see the quantities going in and out of stock.
Lot Numbers are recorded on the Item record under the Inventory Detail tab. This will show you all Available and On Hand quantities.
|Available quantities are quantities that are not already committed to another transaction. They are free to be used. On Hand Quantities are all quantities on site regardless of if they are committed or not.
Using Lot Numbered items allows you to guarantee the lot being used for a certain transaction. A Lot can be receipted into to stock for a particular customer. It can then be held until a Sales Order is raised for that customer whilst other lots against that item come and go. This gives you much more control over movement of inventory and is particularly useful in an organization that deals with perishable goods.
You could also choose to tie a lot in to a particular transaction flow using either drop shipping or special ordering. Using these two features you can configure the system to automatically commit a lot to a Sales order and ensure the same lot is used all the way from Purchase Order to Invoice.
The following video from NetSuite will give you a visual of the Lot Numbered Item record as well as introduce some of the more advanced functionality.
Click here for information about Serialized Inventory items.
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