How to Track Inventory by Lot or Serial Number in QuickBooks Desktop Enterprise

Before you start

• You need QuickBooks Desktop Enterprise with Advanced Inventory turned on. Intuit says Enterprise users can buy or subscribe to Advanced Inventory.
• Pick serial numbers or lot numbers. QuickBooks lets you track one of them, not both.
• Serial numbers suit items where every unit has its own number and you need to know which customer got it, for example for warranty history.
• Lot numbers suit items you buy in batches, where a recall means finding every unit from one lot and who bought it.
• Expiration dates are listed for Enterprise Platinum and Diamond, versions 2023 and 2024.
• If you want to load numbers for stock already on the shelf, have them ready in a spreadsheet. You can also start with new receipts only.

For the other features in the package and how to turn it on, see What Advanced Inventory adds in QuickBooks Desktop Enterprise.

Step 1: Turn on serial or lot numbers

1. 1Go to Edit > Preferences.
2. 2Select Items & Inventory, then the Company Preferences tab. Make sure Inventory and purchase orders are active is selected.
3. 3Select Advanced Inventory Settings, then open the Serial/Lot Number & Expiration Dates tab. Intuit's article on turning features off calls it the Serial/Lot Numbers tab.
4. 4Select Activate Lot or Serial Numbers, then choose Serial Numbers or Lot Numbers.
5. 5Under Show serial or lot number in, check each form that should carry the field. The choices include item receipts, bills, checks, credit card transactions, invoices, credit memos, and sales orders and pending invoices.
6. 6To stop forms saving without a number, select Make serial or lot number mandatory under For the selected transactions. This covers invoices, sales receipts, item receipts, inventory transfers and quantity adjustments.
7. 7Select OK.

Step 2: Turn on expiration dates (Platinum and Diamond)

1. 1On the same tab, select Activate Expiration date.
2. 2Under Show expiration date in, choose the forms that should show the date: item receipts, bills, invoices, credit memos, and sales orders and pending invoices.
3. 3If you made numbers mandatory, QuickBooks also shows an error when the expiration date is missing.
4. 4Select OK.

Step 3: Assign numbers to stock you already have

You don't have to load every existing serial number on day one. Intuit suggests entering serial numbers on new purchases as they arrive, so the file fills in over time. To load current stock now, use an inventory adjustment.

Serial numbers

1. 1Go to Inventory > Adjust Quantity/Value on Hand.
2. 2Set Adjustment Type to Serial Number and enter the Adjustment Date.
3. 3Choose the item in the Item column.
4. 4In the serial number column, open Quick View for Serial Numbers and enter the numbers. You can paste them from a spreadsheet or a CSV file.
5. 5Repeat for each item, then select Save & Close.

Lot numbers

1. 1Go to Inventory > Adjust Quantity/Value on Hand.
2. 2Set Adjustment Type to Lot Number and enter the Adjustment Date.
3. 3Choose the item, type the lot in the Lot Number field, and enter how many units are in that lot in New Count.
4. 4Add a line for each other lot of the same item, or for the next item.
5. 5Select Save & Close.

To add expiration dates to numbers already in the file, open the same adjustment with Serial Number or Lot Number as the type. Choose the item, enter the dates, and select Yes, update. Then check your work on the Serial Numbers in Stock or Lot Numbers in Stock report. The other adjustment types are covered in How to adjust inventory quantity and value.

Step 4: Record numbers as stock comes in and goes out

1. 1Receive stock on an item receipt or bill as usual, and enter the serial or lot number on each line.
2. 2On a sales order, enter the ordered quantity and choose the lot number on each line.
3. 3On the invoice or sales receipt, enter the serial or lot number that shipped. If you made numbers mandatory, you can't skip this field.
4. 4With expiration dates on, you can pick the lots or serial numbers that expire soonest and sell those first.
5. 5If your pickers use the QuickBooks Desktop mobile app, they can type or scan the serial numbers of the units they pick.

You enter lot numbers as stock is received. See How to receive inventory against a purchase order, and How to set up and use barcode scanning for picking on a mobile scanner.

Step 5: Run the lot, serial and expiration reports

1. 1Go to Reports > Inventory.
2. 2Run Inventory Expiration Status to see each lot or serial number with its expiration date and the days left. Filter it to all items, expired items, items yet to expire, or a date range.
3. 3In Enterprise 24.0, run Inventory Stock Status by Lot Number. It groups each item by lot and shows quantity on hand, quantity on sales orders and quantity available.
4. 4To look at one lot, for example during a recall, filter that report with Customize Report.

These reports only appear if Inventory and purchase orders are active is selected in Items & Inventory preferences. Intuit also points to the Serial/Lot Numbers in Inventory report for checking numbers after you load them.

Details that trip people up

• You choose serial or lot numbers once, in Company Preferences.
• The New or Edit Item window has its own serial or lot option. Intuit says it lets you adjust the warnings you set in Preferences.
• On screen you always see the numbers. When a form prints, serial numbers are listed in the description with commas between them, and lot numbers get a separate column.
• To add or remove the numbers on printed forms, edit the form template.
• To stop tracking later, clear the lot or serial checkbox on the same tab. Your other Advanced Inventory features keep working.

Template changes are covered in how to customize an invoice template.

Where QuickBooks Desktop leaves the work to you

• Someone has to enter or scan the right number on every receipt, sale, transfer and adjustment.
• QuickBooks shows expiration dates, but a person still decides which lot ships.
• Loading numbers for existing stock is manual, item by item, even when you paste from a spreadsheet.
• A recall means running the lot report and contacting each customer yourself.
• Intuit lists expiration dates for Platinum and Diamond only.

How Logistify helps around lot tracking

Logistify doesn't assign lot or serial numbers, and it doesn't receive or pick stock. The Sales Order Service enters customer orders that arrive by email, PDF, WhatsApp, SMS, voicemail or paper into QuickBooks Desktop as sales orders. A person reviews the exceptions. Your team then chooses the lot or serial number for each line before the order ships.