Items and Inventory:

Serial Numbers and Batches

SAP Business One
Version 10.0

PUBLIC

Welcome to the overview topic on serial numbers and batches.

1
 Objectives

At the end of this topic, you will be able to:

▪ List the business reasons for using serial numbers and batch
management
▪ Create and use a batch-managed item
▪ Create and use an item managed by serial numbers

▪ In this topic, we will explore two of the methods for tracking items you purchase, make or sell: serial
numbers and batches.
▪ We will look at how to create and use a batch-managed items.
▪ We will look at how to create items and use items managed with serial numbers.
 Business Scenario

▪ Your company would like to more closely track items that they make, buy and sell
throughout each item’s lifecycle.
▪ Some of the items, such as computers, are managed by serial numbers. Each
individual computer has a serial number to track sales and service for that item.
▪ Other items, such as printer cartridges, are purchased in lots and are managed by
batches in order to track expiration dates.

Imagine that:
Your company would like to more closely track items that they make, buy and sell through their
lifecycle.
Some of the more expensive items, such as laptops and desktop computers, are managed by serial
numbers. Each individual laptop or computer has a serial number so that you can easily track sales
and service for that particular laptop or computer.
Others items, such as printer cartridges, are purchased in lots and are managed by batches in order to
track expiration dates.

3
 Serial Numbers

Serial Numbers
▪ Used to track individual objects

Serial numbers can help you track items down to the level of each individual object in your warehouse,
so you know exactly which one was sold to a customer.
Serial numbers are also very useful as a way to track service history for a customer’s purchase.
Here are two criteria that can be used to decide if an item should be serialized:
− Is the item a high value item?
− Should the item be tracked for security or repair reasons?
▪ If the answer to both questions is yes, then the item is a good candidate for serial numbers.
 Serial Numbers and Batches

Serial Numbers Batches

▪ Used to track individual objects ▪ Used to track groups of items with
common characteristics

In contrast, batches are used to track a quantity of an item with characteristics in common. These
characteristics might be attributes you define, such as a shade of color, granularity or PH balance. The
characteristics could be dates, such as expiration dates, manufacturing date, or the date the items
were received into inventory.
A good example of a batch-managed item would be milk. Each batch of milk has a sell-by date. It is
very important to track this date and make sure the milk is sold before its expiration date.
 Management Method

On Every
Transaction

On Release Only
Optional on
Receipt documents

You have the option to set the serial numbers or batch numbers to be assigned on every transaction or
to be assigned on release only.
This is controlled by the “management method” field on the item master record. The two options are
called “on every transaction” and “on release only”.
 On Every Transaction

On Every
Transaction

On Release Only
Optional on
Receipt documents

If you choose “on every transaction” then you must assign serial number attributes for every single unit
at the first point it enters inventory.
Thereafter, the system will prompt you for a serial number on every transaction where the item is
issued out of inventory or returned to inventory.
This way you know exactly which objects are in inventory and which objects have been shipped to a
customer.
This method is useful when you need to track the individual objects at all times, and where the
receiving personnel have the appropriate information at the time the units are received.
When you first receive the serialized items into stock, you can choose the option to enter serial
numbers manually or to create serial numbers automatically using a serial number string of your
choice.
 Release Only

On Every
Transaction

On Release Only
Optional on
Receipt documents

“On release only” means that serial numbers are only required on documents that issue an item out of
a warehouse.
Release documents not only include: goods issue, delivery, A/R invoices and goods issues to
production, but also inventory transfers between warehouses and return and credit documents.
When you use “On Release Only” at the time of purchase, there is no need to enter serial number
attributes. However, when you remove the item from inventory, the serial numbers for these objects
must be created first using the Serial Item Management window.
An alternate option is to choose “automatic serial numbering creation on receipt”. When you purchase
the serialized item, the system automatically creates successive numerical serial numbers for the
quantity you have purchased. With this option, you can immediately release these objects without
further operations. You can update the serial number attributes at a later stage, using the Serial Item
Management window. This is especially useful when a large quantity is produced or purchased.
Why might you choose “on release only”?
One example might be if you manufacture an item and would like to issue it into inventory without a
serial number. This way, you can wait to assign the serial number until item is picked for delivery.
“Release Only” gives you the flexibility to not worry about serial numbers inside the warehouse.
 Optional Allocation

Create Allocate or review serial

Sales Order number details

Unlike release documents that issue stock from inventory, serial and batch information is always
optional on sales orders, because sales orders do not have any effect on inventory, except to create a
commitment. If you would like this commitment to capture information about a specific serialized item
or specify a batch to be sold, then you can do so in the sales order.
Reserving specific serial numbers or batches at the time of the sales order allows for better control and
inventory planning. Perhaps you build some customized computers as special orders for customers.
In that case, you may wish to designate a serial number in the sales order that will follow the computer
through the customizing process until the delivery.
This optional assignment is also possible in an inventory transfer request or an A/R reserve invoice.
 Optional Allocation

Create Allocate or review serial Delivery includes serial If the invoice

Sales Order number details number references a delivery,
then you can no longer
change serial numbers.

Once you have allocated the serial number in the sales order, the serial information will be copied to
target documents for picking, delivery or invoicing
After the serial number is assigned to a sales order, you cannot select it for another document, without
canceling the serial number allocation in the original document. Closing or canceling the sales order
automatically cancels its serial number allocation.
When you copy the sales order to a target document, such as a delivery, the Serial Number window
will open automatically so that you can confirm that this is the serial number you wish to use or you can
update it with a new serial number.
However, once the serialized item leaves the warehouse on a delivery document, you can no longer
view or change the serial numbers on an A/R invoice. If a credit memo is created, then you will be able
to view the serial number window to confirm or update serial numbers.
 Summary

Here are some key points:

▪ Serial numbers track each individual unit of an item.

▪ Batches track a quantity of an item with characteristics in common.
▪ You have the option to set the serial numbers or batch numbers to be assigned on
every transaction or to be assigned on release only.
▪ The management method “on every transaction” mandates that you assign serial
number attributes for every single unit at the first point it enters inventory.
▪ “On release only” means that serial numbers are only required on documents that issue
an item out of a warehouse.
▪ You can optionally assign serial and batch information on sales orders, inventory
transfer requests and A/R reserve invoices.

Serial numbers track each individual unit of an item.

Batches track a quantity of an item with characteristics in common.
You have the option to set the serial numbers or batch numbers to be assigned on every transaction or
to be assigned on release only.
The management method “on every transaction” mandates that you assign serial number attributes for
every single unit at the first point it enters inventory.
“On release only” means that serial numbers are only required on documents that issue an item out of
a warehouse.
You can optionally assign serial and batch information on sales orders, inventory transfer requests and
A/R reserve invoices.

11
© 2020 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and
platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information
in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

13