If you use item tracking in Business Central, you have to enter lot or serial numbers when you ship items on sales orders and transfer orders. The system stops the posting with an error if the item tracking code requires lot numbers and you have not assigned them on the line.
You assign item tracking from the order line under Line, Related Information, Item Tracking Lines. Here you drill down on the lot number field to see all open inventory records with their remaining quantity, and you select the lot you are shipping.
The quantity you enter in the item tracking lines is the base quantity, not the unit of measure on the sales line. If your sales line shows five boxes, the item tracking line might require 120 pieces.
Transfer orders need item tracking on both the shipment side and the receipt side, because shipping and receiving are two separate handlings. When you post the shipment, the lines stay open until someone receives them at the destination location.
Item tracking requirements on shipping documents
When you define item tracking on your items and the item tracking code includes tracking for shipping documents such as sales orders or transfer orders, you have to enter the tracking information when you create or post the shipment of those orders. If you try to post without it, Business Central gives you an error.
Take a sales order with an item that is lot number handled but not expiration date handled. If you sell five boxes and try to post the shipment straight away, you get an error because the item requires lot numbers. You cannot post until you assign them.
Assigning lot numbers on a sales order
You assign the lot numbers from the order line. Go to Line, Related Information, Item Tracking Lines. In the item tracking lines, you enter the quantity that needs tracking. This is the base quantity, so if the sales line is in boxes, the tracking quantity is shown in pieces. Five boxes can equal 120 pieces.
In the lot number field you can drill down to see all open inventory records with the remaining quantity available. If there is only one lot on hand, that is the one you choose, and it should match the physical product you are shipping. Business Central suggests the full amount by default, so you select the complete quantity, close the item tracking lines, and post the shipment. The posting takes that specific item ledger entry quantity out of inventory.
Item tracking on transfer orders
Transfer orders work a little differently because they have both an inbound and an outbound side. A transfer order has a quantity to ship and a quantity to receive, and the quantity to receive is not filled in by default. You ship the items first from the source location, and they arrive at the destination location to be received later.
When you open the item tracking lines on a transfer order, you can define tracking for both shipment and receipt, since these are two separate handlings. Because you are shipping first, you define the lot number on the shipment side. You pick the same lot you used before, and the available quantity is now lower because some of it was already sold on the earlier sales order.
Posting the transfer order shipment
Once the lot number is assigned, you post the transfer order. The posting handles the shipment. After posting, the quantity shipped shows as 10 and the quantity to receive shows as 10. This means the transfer order is still open and waiting for someone to receive the items at the receiving location.
Q&A
Why does Business Central give an error when I post a shipment with item tracking?
If the item tracking code on your item requires lot or serial numbers for shipping documents, you cannot post the shipment until you have assigned those numbers on the order line. The error stops you because the required tracking information is missing.
Where do I assign item tracking on a sales order?
Open the order line and go to Line, Related Information, Item Tracking Lines. There you enter the quantity and drill down on the lot number field to select from the open inventory records.
Why does the item tracking quantity differ from my sales line quantity?
The item tracking lines use the base quantity, while the sales line can be in another unit of measure such as boxes. Five boxes can equal 120 pieces, so the tracking line shows 120 even though the sales line shows 5.
Do transfer orders need item tracking on both shipment and receipt?
Yes. A transfer order has both an outbound and an inbound side, and shipping and receiving are two separate handlings. You can define item tracking for both, and you assign it on the shipment side when you ship first.
What does it mean when a transfer order shows quantity shipped 10 and quantity to receive 10?
It means you have posted the shipment but the items have not been received yet. The transfer order stays open until someone receives the quantity at the destination location.