Lot tracking is inventory functionality in Microsoft Dynamics 365 Business Central that traces stock by batch, or lot, number from the point of receipt or production through to final sale. Each lot is tracked individually through the item ledger, allowing a business to identify exactly which customers received products from a specific batch, which is particularly important for food, pharmaceutical and other regulated industries with traceability and recall requirements.
How lot tracking works in Business Central
When an item is set up with lot tracking, every receipt, production output, transfer and sale records the specific lot number involved. This creates a complete audit trail showing which lot a particular sale came from, and which raw material lots were consumed in producing a specific finished goods lot through manufacturing. If a quality issue is identified, the business can immediately query exactly which customers and shipments are affected by that specific lot.
Lot tracking in practice
- A food manufacturer uses lot tracking to maintain full traceability from raw ingredient batches through to finished product shipments, meeting food safety regulatory requirements.
- A pharmaceutical distributor uses lot tracking to support rapid, precise product recalls if a specific batch is identified as faulty, rather than recalling broader stock unnecessarily.
- A quality manager uses lot tracking data in Business Central to investigate a customer complaint, quickly identifying the specific production batch involved and any other affected shipments.
- A business uses lot expiry date tracking alongside lot numbers to ensure older stock is picked and shipped first, reducing waste from expired inventory.
How Advantage configures lot tracking
Advantage configures lot tracking for businesses with traceability and regulatory requirements as part of Business Central implementation, ensuring the setup supports both day-to-day operations and audit or recall scenarios when needed.
Talk to Advantage about Business Central for regulated industries →
Frequently Asked Questions
Why is lot tracking important for food and pharmaceutical businesses?
Regulatory requirements in food and pharmaceutical industries typically demand full traceability from raw material to finished product, including the ability to trace which customers received products made from a specific batch. Lot tracking provides this audit trail directly within Business Central.
Does lot tracking work with both purchased and manufactured items?
Yes. Lot tracking applies to purchased items received with a supplier lot number, and to manufactured items where a lot number is assigned to a production output, with consumption and traceability tracked through to finished goods in both cases.
Can a product recall be managed using lot tracking in Business Central?
Yes. If a quality issue is identified with a specific lot, Business Central's lot tracking allows a business to quickly identify exactly which other items, production orders and customer shipments involved that same lot, supporting a precise, contained recall rather than a broader precautionary one.
