A lot can represent a quantity of an item that shares the same specifications, one or more receipts from the same vendor, or whatever you choose. You can divide each lot into child lots that can reflect whatever characteristics you choose for items within the lot. For example, you may divide a lot of items from a vendor into child lots to reflect differences in quality specifications. When you allocate stock for production, you can allocate specific lots to a production batch based on the potency, age, or other item characteristics. Oracle Inventory provides complete lot number support for inventory transactions. You can enable lot control for specific items in your inventory. For items under lot control, you assign lot numbers to each receipt, and thereafter reference the same lots each time you perform material transactions. This enables you to have tight control over lot controlled items in your inventory.

Child Lot

A child lot is a subdivision of a lot that you can use if you produce a lot over a period of time, but still want to group the material as a single lot. Using a child lot maintains the integrity of the lot, but enables you to consume it in manageable pieces. When you process transactions for material under child lot control, you enter the child lot as the lot number. The system also maintains a genealogy relationship between the parent lot and the child lot. See Inventory Attribute Group for information about enabling child lot control.

Assigning Lot Numbers

You must assign lot numbers when you receive items under lot control. You can also add quantities to existing lot numbers and split an inventory receipt into several lots, if necessary. Oracle Inventory uses the default lot number generation method that you entered in the Organization Parameters window to determine lot numbers. You also enter the lot prefix and starting lot number in the Item Master window when you create an item. If the item is under user-defined expiration date Lot Expiration (shelf life) Control, you must specify the expiration date for the lot.

You can generate a lot number before you receive it in to the warehouse. Where you create the lot, the system determines the lot origination type. If you create the lot on the lot master, the origination type is lot master. If you generate the lot while performing a transaction, the origination type is Inventory. See, Item Lots and Assigning Lots Within Transactions for more information.

Maintaining Lot Number Information

You can use the Item Lots window to update the expiration date of lots for items under lot expiration (shelf - life) control. You can view all lots that you created in your current organization and the supplier lot information that is associated with the lots.

Issuing Material from Inventory

When you issue an item under lot control from inventory, you must specify a lot number for that item. You can specify more than one lot to cover the transaction quantity. If you attempt to transact an item to or from an expired lot, the system displays a warning message but does not prevent you from using the lot.

Expired Lots

You can assign lot control shelf life days, or enter a lot expiration date to determine when a lot expires. The expiration date controls the availability of the lot for transacting and planning purposes. An expired lot:

• Is not considered as on-hand supply when you are performing min-max, reorder point, or MRP planning calculations

• Cannot be reserved for a date beyond the expiration date

• Can be transacted and is included in on-hand quantities

• Is included in all inquiries and reports, including inventory valuation reports

• Is included in a cycle count and count entry and adjustments are allowed

• Is included in a physical inventory and tag entry and adjustments are allowed

Lot Expiration Action

A lot expiration action is the action that you perform on a lot when it expires. You can assign a default lot expiration to an item on the Item Master or when you generate a lot. To associate a lot expiration action with a lot, you must define shelf life days for the item.

Disabled Lots

Disabling a lot only prevents it from appearing in a list of values when you are performing receipt transactions. If you type in the lot number, it is valid and accepted even though it was not in the list of values. Disabling is used only for tailoring this specific instance of the list of values for lot numbers. A disabled lot:

• Is included in available to transact, available to promise, and available to reserve calculations

• Is included as on-hand supply when you are performing min-max, reorder point or MRP planning calculations

• Is included as on-hand in all inquiries and reports, including inventory valuation report

• Can be transacted with Inventory functions and the Transaction Open Interface

• Can be reserved

Cycle Counting

Oracle Inventory includes the lot numbers of the items to count during a cycle count when it generates a cycle count listing. You must assign lot numbers to all items under lot control for which you enter counts. If a difference exists between the count quantity and the system on-hand quantity, then the system adjusts the item quantity in that lot.

Performing Physical Inventories

Oracle Inventory includes the lot numbers of the items to count in your physical inventory when it generates tags. You must assign lot numbers to all items under lot control for which you enter counts in the Physical Inventory Tag Counts window. If a difference exists between the count quantity and the system on hand quantity, then the system adjusts the item quantity in that lot.

Assigning Lot Numbers to Assemblies

When you complete an assembly under lot control into inventory, you must assign a lot number in the WIP Completion Transaction window in Oracle Work in Process. For assembly completions on discrete jobs, Oracle Work in Process defaults the job lot number.

Purging Lot Transactions

You can purge all lot transaction information from your current organization. Note that the transactions must be in closed accounting periods.