QuickBooks Enterprise Advanced Inventory has given us the ability to track inventory serial or lot number in prior versions for some time, the problem is that QuickBooks Users weren't required to actually use the feature's functionality even if the QuickBooks Administrator had configured it.
But as of Release 8 of QuickBooks Enterprise V20 QuickBooks Administrators now have the option to set-up mandatory serial or lot number tracking for certain transactions. If they choose to make serial/lot number tracking mandatory, QuickBooks will now require serial/lot number details before users can proceed with their transactions.
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While this feature was just released under the R8 update to QuickBooks Enterprise V20, it was scheduled such that QuickBooks Enterprise V21 would be the first new product year to offer this functionality. Still the same, QuickBooks Enterprise Platinum and Diamond Subscribers that have upgraded to R8 should find that the new functionality will be a 'cure for heretofore serial/lot number nightmares.'
Configuring Mandatory Serial/Lot Tracking
This feature is only available to Advanced Inventory QuickBooks Enterprise users with a current Platinum or Diamond Subscription. To enable mandatory serial or lot numbers, select Edit from the QuickBooks menu, then choose Preferences, now click on Items and Inventory, then select the Company Preferences tab. Click the Advanced Inventory Settings button, and then choose the Serial/Lot Numbers tab, select Enable Lot or Serial Numbers, and then choose either Serial Numbers or Lot Numbers (if you have not previously done so). To make tracking mandatory under Default settings for the inventory and assembly items, choose Make serial/lot number mandatory for item receipts, sales receipts, invoices, adjust quantity, and transfer inventory. Click OK to finalize your configuration.
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Please note that this is a 'global' setting and that it must be activated in this manner in order for mandatory serial or lot number tracking to work properly. But, you do have an option of setting ‘mandatory serial/lot’ number tracking at the individual item level. Select Lists from the QuickBooks Enterprise menu, then choose Item List. Open any item type for which Serial/Lot numbers are active (Inventory Items, Assembly Items, etc.). Click the Serial Number button on the right side of the Edit Item window (or New Item window, if adding a New Item). Choose, Make it Mandatory and then click OK to save, then click OK again to save the Item.
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QuickBooks users will be required to enter serial/lot numbers on item receipts, sales receipts, invoices, quantity adjustments and inventory transfers prior to saving all such documents.
By default all of your Serial/Lot tracking eligible items (Inventory, Assemblies, etc.) will have been set to the 'Make it Mandatory' setting at the Item level simply by turning on the Mandatory Serial/Lot Number Preference. So, really the Item level option is allowing you to 'turn-off' mandatory tracking on an item-by-item basis if you determine that specific items should not be subject to the mandatory tracking.
Using Mandatory Serial/Lot Tracking
How many times have you had sales personnel rush through a transaction and simply not take the time to find the serial number of the item they are selling and record it on the sales receipt? Or maybe they jot the lot-number down on a sticky-note when the pull it from the bin and they forget to enter it into the sales transaction? They both have good intentions, they simply don’t follow procedure, perhaps even though they plan to enter the data into QuickBooks after the sale.
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With this new ‘mandatory serial/lot number’ feature they can no longer tell themselves “I will go back and record the information into QuickBooks when I have time later”, and then forget to do so. They must record the information at the time of the transaction, QuickBooks will not permit them to proceed with the transaction until they do so.
Of course, it’s not just sales personnel that make these errors either. Receiving personnel also fail to record serial and lot numbers when they intake orders, and also when inventory is transferred from one location to another. This new feature means they also will be required to enter serial/lot number information before they can finalize their QuickBooks receiving or inventory transfer transactions.
With Mandatory Serial/Lot Number Tracking in QuickBooks v21 you will get more efficient and accurate control of your inventory.
QuickBooks Enterprise v20 or v21 upgrade, that's the Question?
Most of the time when I write about a 'Release update' the question at the end of the article is 'Should you update to the new 'R#' update'? This is a little different circumstance and here is why.
The Mandatory Serial/Lot Number Tracking Option was just released on 9/3/2020 to QuickBooks Enterprise v20 as part of the R8 update QuickBooks Platinum and Diamond customers, and it appears to be working just the way it is designed to work for v20 users.
While this feature was listed in various promotional literature made available concerning QuickBooks Enterprise v21, at press time it appears the feature is NOT available to QuickBooks Enterprise V21 Platinum and Diamond subscription customers within the initial R1 product released on September 8, 2020.
While Insightful Accountant suspects this feature will likely roll-out in a subsequent maintenance release update, probably R3 shortly, if you need Mandatory Serial/Lot Number tracking then you obviously need to stick with v20 and hold off on upgrading to v21 until the feature is released. You certainly DO NOT want to turn on the feature in v20 and start using it, then decide to migrate your file to v21 R1 without it, and find yourself not having a feature you were using in the earlier version.