Introduction
For Australian businesses that manage products with limited shelf lives, knowing what’s in inventory is only the first part of effective inventory management. In reality, companies also need to know which batch a product belongs to, when it was actually received, where it has moved over time and when it expires. These details become key in fields like pharmaceuticals, food and beverages, chemicals, cosmetics etc.
Microsoft Dynamics 365 Business Central gives item tracking capabilities that help businesses handle lot numbers, serial numbers and expiration details. When the setup is done the right way and teams follow clear processes, organisations get better batch traceability in Business Central, tighten inventory control and deal with quality problems or even product recalls more efficiently.
What Is Batch Traceability?
Batch traceability is the way a group of products that were made or received under one batch or lot number is tracked through the whole lifecycle.
For instance, a pharmaceutical company receives 5,000 units of a medicine under batch number MED-26045. Instead of treating every unit as generic warehouse stock, the company keeps details connected directly to that particular batch, not only inventory in general.
That kind of record keeping helps answer important questions such as:
- Who supplied the batch?
- When was it received?
- What is the expiration date?
- Where is the batch stored right now?
- How many units still remain?
- Which customers received products from the batch?
- Which production or sales events involved that same batch?
This visibility is especially useful when businesses need to investigate quality issues or work out exactly which products a recall affects.
How Business Central Supports Batch Tracking
Business Central supports batch tracking by using item tracking so inventory movements are linked to specific tracking numbers. Depending on how the business runs, you can set up lot numbers to indicate batches or use serial numbers when items are individually identifiable.
So, when inventory is received, employees can assign or capture the right lot number. After that, the same tracking details travel with the goods through different transactions like transfers, consumption, production and sales. In other words, it creates a traceable record of what happened rather than depending on spreadsheets or hand-maintained records.
Managing Expiry Dates
Expiry-date control is also a big deal for products with a limited shelf life. A batch comes with a real expiration date, and the business needs to actually see that date when deciding where items should be stored, how they should be allocated or what should be sold first. Business Central’s item tracking stores expiration data connected to the tracked inventory, so warehouse and inventory teams get a clearer signal when stock is getting close to expiring.
For example, a distributor has three batches of the same product:
Without knowing expiration dates, workers could accidentally ship the newest batch first. With proper tracking and warehouse routines, the company prioritises the inventory that expires sooner.
This approach is known as FEFO, or First Expired, First Out.
Industry-specific Use Case: Pharmaceutical Distribution
Suppose a pharmaceutical distributor gets 10,000 tablets in two batches:
In the warehouse, they log both the batch identifiers and the “use by” dates in Business Central. So, when a hospital places an order for 2,000 units, the distributor can pick the stock with the earlier expiry first, following a FEFO approach.
Then, if the manufacturer later identifies a quality issue with PH-101, the batch traceability view helps the distributor find what is left on hand and which customer shipments included that batch. That makes it simpler to isolate the relevant inventory and respond with the right follow-up action.
Best Practices for Expiry Date Management in Business Central
In most cases, Australian businesses use Business Central’s item tracking features to handle expiry dates more effectively. Useful practices are:
Set up item tracking codes: Turn on expiration-date tracking, then set the rules like Require Expiration Date Entry and Strict Expiration Posting.
Record expiry dates with batch numbers: When you receive inventory or it gets produced, capture the lot number and the expiration date there.
Use FEFO picking: Enable pick according to FEFO so picking naturally favours the stock with the earliest expiration dates. This works through Business Central’s warehouse pick processes, so check how your warehouse is configured first.
Monitor expiring stock: Run Business Central’s expiration reports to find what has already expired or is about to.
Maintain traceability: Keep the batch information and the expiry date linked to inventory movements: production, transfers and sales, so you can still track exact lots when something comes up.
For pharma organisations, this setup helps make sure products are traced by batch number and expiry date too and it also supports regulated storage workflows plus controlled inventory handling.
Major Advantages of Batch Traceability in Business Central
There are multiple advantages of an organised batch traceability process such as:
• Better Inventory Visibility
Team members can pull up batch-level detail rather than seeing stock only at item level. This becomes extremely helpful when several batches exist and each one has different expiration dates.
• Faster Recall Management
If one specific batch ends up with a quality issue, having traceability data lets a business figure out which other inventory may be also impacted and which transactions were involved.
• Reduced Product Waste
When you actually see the expiration timing, you can sort and use inventory in a smarter order, which lowers the chances that products become unsellable.
• Improved Customer Service
Customer service staff can answer batch-specific questions faster when the tracking details are already in the ERP system, instead of chasing them across spreadsheets.
• Stronger Quality Control
Manufacturers and distributors can keep a clearer record of inventory movements and handling. This supports internal quality investigations as well as documentation requirements.
Dynamics Square’s Proven Batch Traceability IP
Our pharmaceutical batch traceability capabilities are built on proven, repeatable IP, not a first attempt. We’ve delivered and refined batch traceability and lot tracking solutions across pharmaceutical and nutraceutical implementations, so you start with a tested foundation rather than building everything from scratch.
How Dynamics Square Helped Naturatech Achieve 100% Batch Traceability
Naturatech, an Australian pharmaceutical manufacturer, teamed up with Dynamics Square to modernise the way they handle manufacturing and compliance using Business Central.
With that in place, they managed to hit 100% batch traceability from raw materials all the way to finished goods, which in turn helped Naturatech keep GMP and TGA-related controls tighter. It also reduced their reliance on spreadsheets and other manual steps.
Read the full Naturatech case study here: Microsoft Dynamics 365 Business Central with Copilot
Watch the Naturatech story video here: ERP Success in Pharma: Naturatech’s Digital Transformation with Dynamics Square
Conclusion
Batch traceability in Business Central lets businesses handle lot numbers, expiry dates, and stock in a more efficient way. For pharmaceutical companies, it boosts product visibility and makes it easier to respond quickly to quality problems and recalls without delay.
Looking to improve batch traceability and expiry-date management inside Business Central? Reach out to us at Dynamics Square and get a solution designed around your actual business flow.
