How to Use QuickBooks Lot Numbers for Advanced Inventory Tracking

Decide Whether to Track Serial or Lot Numbers

Before proceeding, determine whether you prefer to track serial or lot numbers, as only one option can be selected.

Opt for serial numbers if you:

• Deal with inventory items that have unique serial numbers.
• Need to track customer associations with specific serial numbers.
• Require insight into individual inventory statuses.
• Need a report linking invoices to serial numbers (e.g., warranty tracking).

Select lot numbers if you:

• Purchase items in batches or lots.
• Track customers linked to particular lot items.
• Require a recall report to track all items from a specific lot, including status and purchaser details.

QuickBooks Lot Numbers Setup

Step 1: Enable Lot Numbers in QuickBooks Enterprise

To begin, enable the Serial/Lot Number and Expiration feature in QuickBooks Enterprise. Keep in mind that this feature is only available with QuickBooks Enterprise Platinum or Diamond Edition. If you have Gold or Silver, you’ll need to upgrade. Contact me for the best pricing and free setup assistance.

To enable Lot Number Tracking:

1. Go to Edit > Preferences.
2. Select Items and Inventory > Company Preferences tab.
3. Click Advanced Inventory Settings > Serial/Lot Number and Expiration Dates.
4. Under Serial/Lot Numbers, check Activate Serial or Lot Numbers and choose Lot Numbers.
5. Select the transactions where lot numbers should appear:
   • Purchase transactions (bills, item receipts, credit cards, checks)
   • Sales transactions (invoices, sales receipts)
   • Inventory adjustments and transfers
   • Build Assembly
6. Set Lot Permissions:
   • Alert me if lot number is empty (notification only)
   • Don’t alert me if lot number is empty (no notification)
   • Make a lot number mandatory (required entry for inventory items)
7. Select whether to receive alerts when a non-existent lot number is entered.
8. Click OK to save settings.

If you already have inventory with lot numbers, you can enter them gradually as new items are received.

Step 2: Enable Expiration Date Tracking

If you need to track expiration dates for your inventory:

1. In Advanced Inventory Settings, enable Expiration Date Tracking.
2. Select the transactions where expiration dates should appear:
   • Purchase transactions (bills, item receipts, credit cards)
   • Sales transactions (invoices, sales receipts)
   • Inventory adjustments and transfers
   • Build Assembly
3. Set Expiration Date Permissions:
   • Alert me if expiration date is empty
   • Don’t alert me if expiration date is empty
   • Make expiration date mandatory
4. Click OK to save changes.

Step 3: Assign QuickBooks Lot Numbers to Existing Inventory

To add lot numbers to inventory already in stock:

1. Go to Inventory Activities > Adjust Quantity/Value on Hand.
2. Select Adjustment Type: Lot Number.
3. Choose the adjustment date.
4. Select inventory site if using multi-location tracking.
5. Enter reference number, customer job, and other details.
6. Enter the item name and lot number.
7. Add expiration date (if applicable) and new count.
8. Click Save and Close once done.

Step 4: Receiving Inventory with Lot Numbers

To track lot numbers when purchasing inventory:

1. Create a Purchase Order under Vendors > Create Purchase Orders.
2. Add vendor details and items ordered.
3. Convert the Purchase Order to a Bill.
4. Under Items Tab, enter Lot Numbers and Expiration Dates.
5. Save the transaction.

Selling Items with Lot Numbers

To track lot numbers when selling inventory:

1. Create an Invoice under Customers > Create Invoices.
2. Add customer details and items sold.
3. Select the appropriate lot number.
4. If quantity exceeds available stock, QuickBooks will prompt a warning.
5. Save the transaction.

How to Adjust or Remove Lot Numbers in QuickBooks

Lot numbers cannot be deleted but can be adjusted or reassigned.

Option 1: Adjust Inventory

1. Go to Inventory > Adjust Quantity/Value on Hand.
2. Select Adjustment Type: Lot Number.
3. Locate the inventory item.
4. Click Remove Lot Number and confirm.
5. Enter new count and save changes.

Option 2: Edit Transactions

1. Go to Inventory > Transaction List by Lot Number.
2. Find the bill, invoice, or item receipt.
3. Edit the lot number (if permitted) and save changes.

QuickBooks Lot Numbers Reports

Transaction List by Lot Number Report

• Helps locate inventory for recalls.
• Shows purchasers and suppliers.
• Displays assembly usage.

Lot Numbers in Stock by Site Report

• Lists lot-tracked inventory by site.
• Displays bin locations, expiration dates, and stock levels.

Inventory Stock Status by Lot Number Report

• Tracks inventory availability.
• Monitors expiration dates.
• Filters by item, expiration tracking, and quantity available.

Inventory Expiration Status Report

• Highlights expired and soon-to-expire stock.
• Helps prevent waste and ensure compliance.

Final Thoughts

Lot number tracking in QuickBooks Enterprise provides an efficient way to manage batch inventory, prevent stock issues, and streamline recalls. If you need to upgrade your QuickBooks subscription or require assistance setting up lot tracking, contact us for expert guidance and exclusive discounts!

If you have any questions about QuickBooks lot numbers and QuickBooks lot tracking or need expert assistance, we're here to help! Contact us for expert guidance on QuickBooks Advanced Inventory Tracking using QuickBooks Lot Numbers. Unlock seamless inventory tracking, enhance accuracy, and drive operational efficiency like never before! If you prefer, you can also contact us directly at (231) 670-4156.