Also called lot tracking, expiry tracking, batch and expiry
Batch tracking means you do not treat all stock of a product as one pile. Each delivery is recorded as a batch, with its batch number, expiry date, purchase cost and MRP. When you sell, you know which batch the units came from.
It matters most where products expire or get recalled: medicines, food, cosmetics and baby care. Without batches, you cannot tell how many units expire next month, or which customers bought a batch that the manufacturer has withdrawn. Your purchase cost per batch also stays accurate.
Say a chemist receives 200 strips of a tablet in batch B2401, expiring in March, and 150 strips in batch B2409, expiring in September. The March batch should sell first. Kownt X records batches with expiry and MRP as stock is received and sells the oldest first.