Batch Settings: Referential vs. FEFO vs. Manual

Batch numbers are used to distinguish between sets of identical products with different production characteristics (production time, production date, identification code, etc.). With batch numbers, the products and the data contained in the product history are traceable. Product batches can be stored with different details in 1C:Drive. These details are defined in Batch settings catalog and can be specified for each warehouse separately.

Figure 1. Main batch settings

Three batch tracking policies are available in 1C:Drive:

• In warehouses with FEFO policy, the product batches with the closest expiration date can be prioritized for sales, production, and other operations. Automatic batch filling can be performed by using the “Fill batches by FEFO” menu in documents that reduce the inventory balance.
  
• In warehouses with Manual policy, batch management is delegated to the user. The user must manually specify the batch in documents that affect the stock balance.
• Unlike the policies above, the inventory is not accounted by batch numbers in warehouses with Referential policy. Since batch data is not included in cost calculations, the user can choose in which transactions (areas) batch tracking will be used. In this way, for instance, while batch information is mandatory for purchases, it can be left unspecified for sales. The batch is only referenced in the documents for user information (archive purposes) with this policy.
  Since batches are not processed in warehouses with Referential policy, each document movement and each warehouse report always includes an empty batch by design (see Fig. 2 below). If accounting and reporting of products by batches is required, the policy of the relevant warehouse should be changed to Manual or FEFO.

Figure 2. Although all inventory is from the same batch, there is no batch information shown for the main warehouse because its batch tracking policy is referential.