QuickBooks

QB Enterprise with Advanced Inventory Can Aid Your Business if a Recall Occurs

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:

QuickBooks Enterprise

Figure 6: Advanced Inventory Settings under Preferences in QuickBooks Enterprise

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:

Advanced Inventory Settings

Figure 7: Lot Numbers setting under Advanced Inventory

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.

Vendor Bill

Figure 8: Vendor Bill with Lot Number field.

Invoice

Figure 9: Sales document with Lot Number field.

Figure 10: Inventory Adjustment by Lot Number

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:

Filter Report by Lot Number

Figure 11: Filter report from Transaction List by Lot Number report

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:

Transaction list by lot number

Figure 12: Transaction List by Lot Number report

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:

Global search on lot number

Figure 13: Performing a global search on the lot number 5598159.

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.


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About the author

Tim Grant

Tim Grant, MBA, is the President of Business Solution Providers in San Francisco, California. BSP specializes in third-party inventory and manufacturing software products that integrate with QuickBooks. The company provides Needs Assessments to businesses looking for an inventory or manufacturing software solution. Once a choice is made, the BSP team can provide setup, training and implementation services to sync the company’s goals with the capabilities of software.

Tim has practiced public and private accounting for over twenty years in the service and manufacturing industries. He is an advanced-certified QuickBooks Pro Advisor, and a member of the Institute of Management Accountants, the National Advisor Network and The Sleeter Group.

12 Comments

  • Well written and researched article. Worth reading & sharing. QuickBooks Enterprise helps to manage inventory across our business right in QuickBooks. I agree with your point that Enterprise with the module Advanced Inventory is the only tool in the QuickBooks family of products that tracks “batches” or lot numbers of the products in stock, as well as transactions where those lots are used

  • Nice article. QuickBooks advance inventory is a great feature particularly for manufacturing business. I have implemented it in pharmaceutical companies, production, restaurant, construction and results are awesome. Everything can be tracked at micro level. Further FIFO costing, lot, and batches can be tracked. Bar code is an other important element to record transactions errorless.

      • QuickBooks itself has no feature for expiry date. I I have implemented quickbooks in Pakistan particularly in pharmaceutical companies and always used custom field and serial or lot number to be printed on invoice or vouchers. The said custom field can also be shown on reports. Use quickbooks advance inventory or quickbooks point sale in your pharmacy to handle inventory, print thermal printer receipt and that is the only way in QuickBooks.

        • Sorry i type it wrong actually i also talk about pharmacy company in Lahore Pakistan and they need expiry date so i will use a other and one more favor they want a invoice with sales tax at each line item rather than at end

          • Yes. I understand requirement of sales tax invoice in Pakistan and multi column invoice to be issued to customers as well as other voucher like Bank Payment Voucher, Cash payment Voucher, BRV, CRV and JV etc. This is possible in quickbooks. When I implement quickbooks in pharmaceutical companies I design all required vouchers to be printed from quickbooks. I can send you template my email is [email protected].
            If you are using quickbook enterprise you will have to use integrate ms access/crystal report with quickbooks. When integration is completed. All quickbooks tables/data will be live in Ms Access/Crystal Report/Excel where all type of queries and reports as per your requirements can be managed.

  • QuickBooks Enterprise is a good software but I have some problem:
    (1) I paid cash to vendors not paid by checks ,The problem is QB don’t allow cash payment just checks payment !
    (2) The features of Inventory is great but can any one tell me about storekeeper’s documents as like received (stock-in) & issued (stock-out) this’s very important documents for storekeeper so how can he used QB if it not support these documents ? is that mean I must add (Fishbowl warehouse) to solve this problem ?
    Best Regards

    • Your cash payment should come out of some account. It could be a “petty cash” account, or a bank account. It has to exist somewhere. If you have a petty cash account of some sort, you make that account a “bank” account in QuickBooks. Then when you pay someone in cash, you “write a check” from that account. You aren’t going to physically print it, just enter it in QuickBooks. That “check” serves as your cash payment ticket for accounting purposes. That works very simply. It also works for use of debit cards for payments, as well.

      For the reports, every type of inventory-related business is looking for something different. For the most part, when I want to look at transactions related to inventory, I will select the “Transaction Detail Report” (under “Custom Reports”) and set filters for the kinds of transactions that I’m looking for. There are also reports like the “Sales by Item Detail” and “Purchases by Item Detail” reports that may help. If you aren’t satisfied with any of these options, I would recommend using QQube (www.clearify.com) for creating custom reports – it is the best report generator program for QuickBooks desktop.

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