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The simplest explanation is that a stock lot is one batch of some product. 

For example, each time you purchase it, you will receive a new batch, therefore a new stock lot number (aka “a batch number”) is created to identify it.

You may have many stock lots of the same material - purchased at different times, with different costs, possibly from different vendors, with different expiry dates, stored in different locations/shelves, some of which have certificates, files or notes attached etc.

Once this information has been recorded and associated with the stock lot number, then this allows to

  • exactly know, what you have in stock, in which batches, the locations, how much is the actual value, etc.;

  • see if anything is going to expire and act accordingly;

  • store lot specific information like Delivery notes, Certificates of Conformance, or other documents;

  • exactly track the actual cost of each end-product, since the actual cost of materials used is known.
Need More Information? Check the User Manual or open a Support Ticket.

It is functionality that lets you record the detailed history of each item that is processed in your company.

How does lot tracking work?

Lot tracking ensures that the history of every product and material is known. Technically this means the following:

  • Each batch of an item is tracked and identified separately.
  • Every time a material is purchased, a unique lot number is recorded for it.
  • During production, materials are consumed from specific stock lots. The stock lot numbers are recorded. 
  • Each production run produces a new lot (batch) of products.
  • Stock lots from where products were given out are recorded for each sale.
  • Defects in end products can be tracked back to specific production operations or material purchases in seconds.
  • For a defective batch of materials, it is possible to identify all products which are affected.

How does lot tracking work in MRPeasy?

The warehouse management functionality (WMS) together with manufacturing planning and reporting functions (MRP-MES) in MRPeasy offer full lot and serial number traceability. This makes MRPeasy perfectly suited for ensuring material and product traceability:

  • Lot tracking is automated and is always working.
  • Unique lot numbers are automatically generated when products enter the system.
  • Notes and files, e.g. certificates, can be attached to individual stock lots.
  • Expiry dates of materials and products are managed.
  • MRPeasy proposes which lots to pick items from – no manual lot number recording needed by the worker.
  • MRPeasy makes sure that no product or material can be overbooked by managing the reservations properly.
  • If materials or products need to be picked, the lot number, location, and quantity is always indicated to the workers.
  • It is possible to divide one batch of materials (a stock lot) between different production runs, or customers.
  • In addition to stock lot numbers, it is possible to track serial numbers of individual parts.
  • The actual cost of each batch of products is known (from direct materials cost).

 See also What is a stock lot?

Need More Information? Check the User Manual or open a Support Ticket.

Real cost:

It’s important to understand that the cost of all items in MRPeasy is their real cost. Each batch of items gets its exact cost, which is saved at the stock lot details (see Stock -˃  Stock lots).

The cost is not average purchase price or not a BOM average of materials in stock, etc.

When specific items are consumed in manufacturing then their real price will make up the price of the produced item. The cost of manufactured items is used materials cost + workstations cost + workforce cost. This will be saved in the stock lot details.

BOM cost approximation:

The BOM document only approximates the cost of materials.

It does not necessarily represent the realities of production, it’s just an approximation, one variation of the many combinations of inputs possible. The production has not taken place yet.

If there are variations in input prices, then it's not possible to predict with 100% accuracy what will be the real cost of the final product.

Only, once you start planning to purchase, then the materials will get their real price. And once you start planning production, the materials from a specific lot (with a specific price) are booked and their cost carries on to the finished product.

Getting an accurate cost estimate:

If you wish to get a cost estimate of produced items, then you need to simulate the manufacturing processes:

  1. Use "Estimate costs and dates" function in a Customer Order.
  2. Start planning a Manufacturing Order.

 


 

Need More Information? Check the User Manual or open a Support Ticket.

The cost in Stock -˃ Items displays the average cost of all items in stock, this is the average real cost. This does not display the estimated cost of a manufactured or a purchased item.

  • If there are stock lots of the item, the cost is the average cost of all existing stock lots of the item. 
  • If there are no items in stock (i.e. no stock lots), there is no cost shown.
  • If the cost is displayed incorrectly, check if the cost of existing stock lots are inserted correctly.
Need More Information? Check the User Manual or open a Support Ticket.

There has to be an input to take prices from. If the cost approximation is not displaying anything, then either some or all materials do not have purchase terms or stock lots.

See User Manual here and here.

Getting an accurate cost estimate:

If you wish to get a cost estimate of produced items, then you need to simulate the manufacturing processes:

  1. Use "Estimate costs and dates" function in a Customer Order.
  2. Start planning a Manufacturing Order.
Need More Information? Check the User Manual or open a Support Ticket.

For data consistency reasons it is not possible to update the quantity of stock lot directly.

If you need to adjust a quantity of a particular stock lot, then it can be done through the document that created that lot:

  1. if this lot is purchased, please open the purchase order, and adjust quantity there;
  2. if the lot is produced, please open the manufacturing order;
  3. if the lot is added manually, please create another lot or write-off.

Probably the easiest way is the following:

  1. go to Stock -> Stock lots, find the lot and open lot's details;
  2. there is a field "Source" that contains whether a link to the parent document or a text "Manual lot";
  3. if the lot is not created manually, click the link, and adjust the quantity there.
Need More Information? Check the User Manual or open a Support Ticket.