Are you wondering how to do batch tracking in SAP Business One®? It is an optional feature. You can maintain perpetual inventory in B1 without using batch or serial number tracking, or, you can mix and match. You can have product which uses batch tracking and others that don’t.

Settings for Batch Tracking

Global default settings for batch tracking are set up in the General Settings window under the Administration->System Initialization menu. See the image below.

Management Method

First, you will need to select when you want to record batches on transactions. The options are “On Every Transaction” or “On Release Only”. If you choose “On Every Transaction”, you will be required to enter or select the batch every time product moves in the system. Incoming product will need to be identified with a batch ID. Product that is transferred from one location to another will require that you select the batch from which the product is taken. If you choose “On Release Only”, you only need to record the batch when you deliver or invoice the product.

If you are only interested in providing your customers with a batch number for your product, then, the “On Release Only” option may be for you. Whenever you need to track components that come from suppliers or multiple sources from within your organization, you will want to use the “On Every Transaction” choice. This selection will allow you to effectively trace a batch of a product from the supplier all the way through your manufacturing process to your customers.

Issue Primarily By

This setting determines whether you will issue your parts (used primarily for picking) by batch numbers or by bin locations. If you are not using bin locations, the choice is obvious, batch numbers. If you are using bin locations, do you want to display the bin location when choosing where to take the items from or do you want to show the batch number?

Display Batch Quantities By

When looking at batch transactions, the unit of measure for the quantity can be displayed in the unit of measure for the document or the unit of measure that the product is stocked in. For example, if you purchase sugar in 100 lb bags, your unit of measure may be “Bag”. When you purchase 10 bags, the quantity in the document will be 10. However, if you stock the sugar in pounds, then your stocking unit of measure is pounds. The batch transaction report in SAP can be shown in either quantity, depending on this switch.

Basic Setting for Batch Status

There are three choices for the initial setting of batches when created: Released, Not Accessible, and Locked. The released status indicates that the product can be used immediately. The other two status are very similar. The “Not Accessible” indicates that the product is in use, like in production or quality control. It can only be transferred between locations. the “Locked” status indicates that only transfers or goods issues are available. Basically, the product cannot be used. You may also block multiple receipts to the same batch. The idea here is that a batch really represents a single receipt of product and if you’re going to bring in more tomorrow, even if it comes from the same origin, it should have a new batch number.

Batch Management on Item Master

On the Item Master, you have the option of setting whether and item is managed by batch number or not. You can also indicate here, whether or not to require a batch on every transaction or not. The default will come from the setting in General Settings, but, can be overridden here. Lastly, you can specify whether to issue primarily by Batch Numbers or by Bin Locations.

On the Inventory Data tab, you have one last selection for the batch process. One of the more recent feature additions is the ability to track inventory value by Batch or Serial number. This selection is made here and cannot be changed when there is inventory on hand.

Marketing Documents – Selection of Batches

You can begin the selection of batch IDs in Sales Orders. Right click on the quantity field of the row you want to select the batch number for. You can then assign the quantities to the batches desired. The process for assigning batches on other Marketing Documents are identical.

That is the process. When you receive in parts that have batch numbers, you can assign the batch number. When those components are issued to manufacturing, you will be required to select the batch from which the parts were picked. If your finished goods have batch numbers, you then assign batch numbers when the product ships.

If you want end-to-end batch traceability, you will want batch numbers on your finished goods which are sold to customers so that you can tie the components or ingredients to the final product.

Once you have your tracking in place, you are ready to use the Batch Traceability Report for SAP Business One, from Audaz.