Lot & Expiry Tracking Basics

Track batches and expiry so the right stock sells first and nothing expires unnoticed.

4 lessons 35 min 5-question assessment 75% to pass

What you’ll learn

Explain when lot and expiry tracking is needed

Record stock by lot/batch with expiry dates

Sell oldest-expiry-first (FEFO) to reduce waste

Quarantine and handle expired stock correctly

Lesson 1 of 4 Reading 8 min

When you need lots and expiry

Some goods cannot be treated as identical units: food, pharmaceuticals, chemicals, and cosmetics carry batches and expiry dates that matter for safety and compliance. For these, "200 units" is not enough — you need to know which batch and when each expires.

Lot and expiry tracking adds that dimension. The same item now carries batches, each with its own quantity and expiry, so you can trace and control stock that the law and your customers expect you to manage.

A pharmacy holding the same medicine from three deliveries needs to know that batch A expires next month while batch C is good for a year — selling them blindly as "one item, 200 units" risks dispensing expired stock and failing an inspection. Lot tracking keeps each batch and its expiry visible so the right one is picked.

Key takeaways

Perishable or regulated goods need batch and expiry tracking.
"200 units" is not enough when batches differ by expiry.
Each lot carries its own quantity and expiry date.
Example: a pharmacy must know which medicine batch expires first.

Lesson 2 of 4 Practice 9 min

Recording stock by lot

With lot tracking on, receiving captures the batch number and expiry, not just the quantity. On-hand is then the sum of its lots, and you can always see the breakdown — how much of each batch you hold and when it lapses.

This is the foundation for traceability. If a supplier recalls a batch, you can find exactly where it is and how much remains, instead of pulling everything off the shelf.

When 100 units arrive, you record them against, say, lot "2026-03-A" expiring 2026-09-30; a later delivery becomes its own lot. If that supplier later recalls "2026-03-A", you query the lot and pull precisely those units across every location — rather than guessing or quarantining the whole product line.

Key takeaways

Receiving captures batch number and expiry, not just quantity.
On-hand is the sum of its lots, with a visible breakdown.
Lots enable precise traceability and recalls.
A recall pulls one lot, not the whole product line.

Lesson 3 of 4 Reading 9 min

Sell oldest-expiry-first (FEFO)

For dated goods the picking rule is FEFO — first-expiry, first-out: sell or issue the batch that expires soonest before the ones with more life. It is the discipline that turns shelves full of dated stock into minimal waste.

FEFO differs from FIFO: it follows expiry, not arrival order, because a later delivery can sometimes expire sooner. AWRA can surface the soonest-expiring lot so staff pick the right one.

If batch A arrived first but expires in 2026-09 while batch B arrived later but expires 2026-07, FEFO says sell batch B first — the opposite of strict FIFO. Following expiry rather than arrival is what stops the "found a shelf of expired stock behind the fresh" surprise at stocktake.

Key takeaways

FEFO = first-expiry, first-out for dated goods.
It minimises waste from stock expiring on the shelf.
FEFO follows expiry, not arrival order (unlike FIFO).
AWRA can surface the soonest-expiring lot to pick.

Lesson 4 of 4 Reading 9 min

Handling expired stock

Stock that reaches its expiry must come out of sellable inventory — quarantined or written off — so it cannot be sold by mistake. Catching it before the date, not after, is the goal; selling expired goods is a safety and legal failure, not just a loss.

Treating expiry as a status (like a quality hold) means the system stops it being picked or sold once lapsed, and the write-off is recorded with a reason for the trail.

A weekly review of lots approaching expiry lets you discount, return, or move them while they still have value; once a lot lapses it is quarantined out of available stock and written off with an "expired" reason. That reason data then tells you which items you consistently over-order and waste — turning expiry from pure loss into a buying lesson.

Key takeaways

Expired stock must leave sellable inventory (quarantine or write-off).
Selling expired goods is a safety and legal failure, not just a loss.
Expiry acts like a status that blocks picking and selling once lapsed.
A weekly near-expiry review and "expired" write-off reasons cut future waste.

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Lot & Expiry Tracking Basics

What you’ll learn

Course content

When you need lots and expiry

Recording stock by lot

Sell oldest-expiry-first (FEFO)

Handling expired stock

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