Inventory batches

Inventory batches represent a quantity of inventory items that are received on a specified date for a specified cost. Inventory batches provide the basis for costing based on valuation methods.

For inventory items that use the LIFO or FIFO valuation methods, a batch record is created for every inbound transaction. For outbound transactions, items move out of batches and the quantity in the batches decreases. The available quantity is tracked as items are added to and removed from inventory. After the available quantity reaches zero for a specific batch, the batch is retired.

For inventory items that use the standard or average valuation methods, a single batch record is created, and the quantity and total cost fields are updated. After the available quantity reaches zero, the batch still exists. If outbound transactions are posted, the quantity is a negative value.