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batches, you cannot tell how many units expire next month, or which customers bought a batch that the manufacturer has withdrawn.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. Okount records batches with expiry and MRP as stock is received and sells the oldest first.