Item tracking in Business Central provides detailed visibility into inventory movement and status throughout the supply chain. By tracking items using lot numbers or serial numbers, businesses can improve inventory control, support traceability requirements, and make more informed operational decisions. While this session focuses primarily on lot tracking, many of the same concepts also apply to serial number tracking.

Why item tracking matters

Item tracking helps organizations:

• Monitor inventory from receipt to final use or sale
• Improve inventory accuracy
• Support audit and compliance requirements
• Track product history and traceability
• Gain greater visibility into inventory movements

This level of control is especially valuable for businesses that must maintain detailed records of inventory transactions.

Setting up item tracking codes

The first step in implementing lot or serial tracking is configuring item tracking codes. Business Central allows multiple tracking codes to be created, each with different settings based on business requirements. Common settings include:

• Lot-specific tracking
• Automatic lot number creation
• Expiration date requirements
• Warranty date requirements

Organizations can create different tracking codes depending on the types of products being managed.

Assigning tracking codes to items Once tracking codes are configured, they must be assigned to individual items. This assignment is completed on the Item Card by selecting the appropriate Item Tracking Code. Before assigning tracking, organizations should carefully evaluate which items require lot or serial tracking, as these decisions have long-term implications.

Important tracking limitation

Once item tracking has been enabled and transactions have been posted for an item:

• A tracked item cannot be converted back to a non-tracked item.
• A non-tracked item with transaction history cannot be converted into a tracked item.

If tracking requirements change after transactions have been posted, a new item record must be created. Because of this limitation, planning item tracking requirements during implementation is strongly recommended.

Managing lot numbers

Lot numbers can be assigned in several ways. Common approaches include:

• Automatically generating lot numbers from a number series
• Entering vendor-provided lot numbers during purchasing transactions
• Selecting existing lot numbers when appropriate

For purchased inventory, organizations often enter the supplier's lot number to maintain traceability throughout the supply chain.

Using item tracking in purchase orders

When receiving tracked inventory through a purchase order, Business Central requires a lot or serial number to be assigned before posting. If tracking information is missing, the system prevents the transaction from being completed. Users can assign tracking information by:

1. Opening the purchase order line.
2. Selecting Item Tracking Lines.
3. Entering or assigning the appropriate lot number.
4. Completing the receipt process.

This ensures all tracked inventory is properly recorded.

Working with lot information

Business Central includes a Lot Information Card that stores additional details about each lot. Information may include:

• Lot number
• Item number
• Quantity on hand
• Source transaction references
• Certificates
• Custom lot-specific information

Many organizations customize the Lot Information Card to capture additional details specific to their industry or products.

Blocking and managing lots

The Lot Information Card also provides options for managing lot availability. Users can:

• Review lot balances
• View transaction references
• Block or unblock specific lots

These capabilities help organizations maintain control over inventory that may require review, quarantine, or special handling.

Creating lots in advance

Lots do not always need to be created during transactions. Organizations can create lot records ahead of time by:

1. Creating a new lot.
2. Assigning it to an item.
3. Making it available for future transactions.

This approach can be useful when preparing inventory structures before receiving or processing inventory.

Using configuration packages for lot imports

For new Business Central implementations, Lot Information can be imported in bulk using configuration packages. This allows organizations to:

• Load existing inventory lots
• Import large volumes of lot records
• Avoid manual data entry
• Accelerate implementation activities

Configuration packages can significantly streamline setup when large inventories already exist.

Key considerations

Before implementing item tracking:

• Determine which items require lot or serial tracking.
• Configure tracking before posting transactions.
• Consider any compliance or traceability requirements.
• Understand the ongoing process changes required for tracked inventory.

While item tracking provides significant visibility and control, it also introduces additional processing requirements that users must incorporate into their daily workflows.

Key takeaway

Item tracking in Business Central helps organizations improve inventory control, traceability, and compliance by tracking inventory through lot or serial numbers. Careful planning during setup is essential, as tracking settings cannot be easily changed after transactions are posted. When implemented correctly, item tracking provides greater visibility into inventory and supports more effective inventory management.