Setup Is Not a Lot of Work
In practice, tracking lots in QuickBooks Enterprise is fairly straightforward. You start by turning on Lot Tracking under the Advanced Inventory module in the Items & Inventory section of Preferences:
The Lot Number Tracking selection is on the second tab. Click the selection button to Enable Lot or Serial Numbers, then choose the radio button for Lot Numbers, and click OK:
QuickBooks will close all of the open windows. All of the transactions listed above will now have an additional field for lot numbers. For distribution companies, the process is fairly straightforward: lots are entered on the Item Receipts during purchasing, and are selected on the dropdown of sales transactions to reduce the quantities in the lot. Quantities in stock can also be reduced or increased via the Inventory Adjustment window. For manufacturing companies using Assemblies Builds, internal lot numbers can be added at each stage of production.
Reaction in Case of Need to Recall
So, what should you do if the worst possible scenario actually occurs and you have to recall one or more products?
QuickBooks only offers two sources for tracking recall items, available on the item screen in the Inventory Center: the Transaction List by Lot Number (a report), and the Quantity on Hand by Lot Number (window).
Clicking on the Transaction List will produce a filter window for the Lot Number:
Once the item and lot number are identified, a report is created listing all purchase, sales and adjustment transactions for that lot. In this simple example, let’s say a quantity of 20 was purchased for the item, 10031, then sold in subsequent months:
We can see that 20 units were purchased on December 2, and four sales were made. QuickBooks was tracking the lots per transaction, which is great.
Another way to identify the transactions is by putting the suspect lot number in the global search field of QuickBooks:
The other recall tool is the Quantity on Hand by Lot Number window. This at-a-glance snapshot of items with lot numbers gives the viewer insight into what quantities of lots are available for a given product.
Note: there is a Lot Numbers in Stock report under Reports => Inventory. However, it does not give quantities of stock on hand, only the lot numbers.