In our last post we introduced the feature of lot tracking, available with a subscription to the Advanced Inventory module for QuickBooks Enterprise Solutions. Today, we conclude our look at that feature.
The final example used in the previous post, we completed a transaction using more of a particular item, in a particular lot number, than was actually available.
As you can see from the above screenshot, QuickBooks allows the items in a particular lot to be sold or used even if there is insufficient on hand.
There is a new Adjustment Type in the Adjust Quantity/Value on Hand function. This allows the adjusting of quantities within specified lots. This adjustment has no affect on the general ledger or financial reports as it makes no dollar adjustments. The transaction will merely change the amounts in existing lots however the user specifies.
In the case of the screenshot above, lot quantities for the bottles used in the build transaction are corrected. But this does not have to be a balanced entry. We could merely correct the negative number in lot 3 and leave lot 6 unchanged.
It is important to remember, there is no relationship between quantities in lots and total quantity on hand.
Even if lot numbers are used, some items can be set so they do not generate the warning messages if lot numbers for them are not included on forms. For an item that would never be tracked in lots, the following setting should be used.
The default setting for Warn me/Don’t warn me, is set in preferences when activating Lot Tracking for QuickBooks. It can be changed for individual items in the Edit Item window accessed by editing the item on the item list or from the Inventory Center.
In this instance, we have decided not to use lot numbers for these labels and have set QuickBooks not to warn us since we will not be entering lot numbers for this item.
There are two reports for lot numbers found at Reports->Inventory. Lot Numbers in Stock shows below.
If using sites, there is another report like this one broken out by site.
The Transaction list by Lot Number requires the user to specify the item and lot number.
More information, like the quantity of an item in each lot, can be found in the Inventory Center.
Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor