First expiry First Out Lot Assignments Bundle

Requirement

An automated system should be implemented in NetSuite that selects the Lot number in the Item Fulfillment record based on the expiry date. The system should automatically choose the Lot with the nearest expiry date for item fulfillment.

Solution

FEFO (First Expiry First Out) lot assignment is a process of assigning lots to inventory items based on the expiration date. NetSuite offers FEFO lot assignment as a standard feature, which can be enabled through the Lot Expiration Date bundle. The FEFO Lot Assignments Bundle is developed for use primarily with NetSuite Oneworld.

To install FEFO lot assignment bundle,

Go to Customization > SuiteBundler > Search & Install Bundles. Search for “Lot Expiration Date” bundle and install it.

FEFO lot assignment bundle follows the criteria:

• For lot numbered items, the FEFO Lot Assignments commits and assigns lots. For Non lot items, it makes only commitments.
• The Location field, if available at line level of a sales order, must not be empty.
• The FEFO Lot Assignments assumes that the sales order always aligns with the corresponding item fulfillment record. If you fulfill less than the committed quantity, then you must also make allocation manually based on the expiry date.
• If Intercompany Cross-Subsidiary Fulfillment feature is enabled, a value is required in the Inventory Location column at line level.
• When assigning lots on order fulfillment, the FEFO Lot Assignments does not consider commit days and minimum fulfillment percentage.
• Sales order line items that have the Commitment Confirmed box checked are not committed.
• Sales orders that have only one of the following statuses are considered for commitment and lot assignment:
  • Pending Fulfillment
  • Pending Billing/Partially Fulfilled
  • Partially Fulfilled
• If the Expiry Date Required box for an item is checked, you must add expiration date to the lots of that item.
• For kit items, the committed quantity is displayed as a whole number on the sales order page.
• When order quantity and lot quantity have different units, a conversion of units take place. In such case, the FEFO Lot Assignments considers the converted values up to 4 decimal places.

To use the FEFO Lot Assignments, enable the following features:

1. Items & Inventory – Supply Allocation
2. Items & Inventory – Advanced Bin/Numbered Inventory Management
3. Items & Inventory – Serialized Inventory
4. SuiteCloud – Custom Records
5. SuiteCloud – Client SuiteScript
6. SuiteCloud – Server SuiteScript

FEFO lot assignment can help businesses manage their inventory more effectively by ensuring that items with the earliest expiration date are sold or used first. By enabling the Lot Expiration Date bundle and assigning FEFO lot numbers to inventory items, businesses can streamline their inventory management processes and reduce the risk of waste or spoilage.