Batch inventory helps the business in deciding which inventory method they want to implement for their product type during the time of order procurement and order fulfilment (FIFO, LEFO, FEFO etc.)
This feature is not required for all businesses as their products or category of products do not require the Batch expiry feature. Hence, for the businesses that require this feature can categorize their inventory in batches by enabling the ‘Batch group inventory’ setting.
The batch groups can be created on the basis of stock manufacturing date, stock expiry date, Stock receive or return date, purchase price or selling price and other attributes using custom fields.
How to set up Batch Inventory
1. In OMS, go to ‘Settings’ and click on ‘General Settings.’
2. Click on 'Enable batch Goods Receive' check box.
3. Click on ‘Save.’ This will enable the Inventory batch check at the time of inbound/outbound movement of the stock.
4. To Configure the batch group details in OMS settings, click on ‘Settings’ and then ‘Inventory Batch Groups.
5. Click on "Add batch group," provide a name & description to the Batch type and enter the batch category details.
6. Select the ‘field code’, ‘label description and ‘data type’ for the product inventory.
7. Apply the batch group application checks on the inventory basis if it ‘is enabled’ or ‘is required’ or ‘both.’
8. Click on ‘Save.’
Note: Kindly note that you can also create batches as per your product demands using "Custom Fields" and choose the batch data type.
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 analysed by utilizing custom fields.