ANS-1761 · INVENTORY & ITEM MANAGEMENT
How Does NetSuite Manage Automatic Lot Selection on Transactions?
NetSuite's Inventory Details menu displays lot information, but automatic selection logic can be configured using features like FEFO preferences.
Short answer
NetSuite's Inventory Details menu shows available lots and their expiration dates. While lots are often displayed by on-hand quantity, NetSuite supports automatic lot selection based on business rules like First-Expired, First-Out (FEFO) through dedicated features and SuiteApps, enabling efficient inventory management during fulfillment.
Scenario
Users often need to fulfill sales orders requiring specific quantities from lot-controlled items. The challenge arises in determining which specific lots to allocate when multiple lots are available with varying quantities and expiration dates, especially when aiming for automated selection.
Solution
At the time of fulfillment in NetSuite, the Inventory Details menu provides a comprehensive list of all lots with inventory on hand, including their respective expiration dates. While the default display in this menu may order lots by On Hand quantity, NetSuite's capabilities for automatic lot selection have evolved.
NetSuite now offers features and SuiteApps, such as FEFO Lot Assignments preferences, that enable automatic lot selection based on expiration dates, supporting business rules like First-Expired, First-Out (FEFO). This contradicts the previous notion that automatic lot selection lacks business sense, as it is now a supported and implemented practice for efficient inventory management.
Consider a scenario where a sales order requires 12 units of a lot-controlled item:
- Lot#1 has 4 units on hand.
- Lot#2 has 30 units on hand.
Without specific automated rules, the system faces a decision: should it allocate all 4 units from Lot#1 and then 8 units from Lot#2, or fulfill the entire 12 units from Lot#2, or follow another logic? NetSuite's advanced features address these complexities by allowing organizations to define specific criteria for automatic lot allocation.
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