Forming Batches is an inventory management practice which helps the businesses to trace and monitor the history of a product or group of items with similar properties. Once the batch inventory is enabled by the users in OMS, the inventory starts reflecting batch-wise. This helps the business in deciding which inventory method they want to implement for their product type during order fulfillment. (FIFO, LEFO, FEFO etc.) As a result, the businesses can categorize their batch inventory basis MRP, dates and other attributes (using custom fields), viz.
1. Purchase Price
2. Selling Price
1. Stock Manufacturing Date
2. Stock Expiration Date
3. Stock Received Date
4. Stock Return Date
How to set up Batch Inventory
Step 1: Enable the store details
- Go to OMS>>Settings>>General Settings
- In Store details section, enter the Store name and store contact email ID.
- Click on 'Enable batch Goods Receive' check box and save your settings.
- This will enable the Inventory batch check at the time of inbound/outbound movement of the stock.
Step 2: Configure the batch group details in OMS settings.
- Go to OMS>>Settings>>Inventory Batch groups
- Click on "Add batch group," provide a name & description to the Batch type and enter the batch category details.
- Apply the batch group application checks on the inventory basis if it 'is enabled' or 'is required' or 'both'
- Kindly note that you can also create batches as per your product demands using "Custom Fields" and choose the batch data type.
- Save the configuration.
Business Use case of Batch Inventory
- Batch-wise cost variation can be handled by enabling MRP configuration, i.e., 'Is enabled.'
- Inventory Management techniques FIFO (first in first out), LIFO (last in first out), FEFO (first expiry first out) can be practiced by enabling the Expiry dates or Manufacturing dates configuration by checking 'Is enabled' configuration.
- During PO inbound or GRN inbound, the manufacturing dates or expiry dates can be made mandatory by 'is Required' check while saving the configuration.
- The MRP cost variation can also be checked during inbound by making MRP configuration as 'Is Required.'
- Users can also keep a check on the product return date by using custom fields and enabling it for inventory analysis.
- Other Product inventory data can also be analyzed by utilizing custom fields.