If you sell medicines, food or anything with a shelf life, the batch is the unit of safety and the expiry date is the unit of profit. This guide shows what to capture and when.
What to capture on receipt
- Batch or lot number
- Manufacturing date
- Expiry date (or shelf life)
- Quantity received and rejected
- Supplier and bin location
Expired goods should be refused at the door. Stock that needs inspection should wait in quarantine until passed.
Sell by expiry, not by arrival
Use FEFO so the earliest expiry sells first. Compare it with other methods in FIFO vs FEFO vs LIFO.
Watch the clock
| Time to expiry | Action |
|---|---|
| More than 6 months | Normal sale |
| 3-6 months | Prioritise, push to fast customers |
| 1-3 months | Discount, transfer to the faster-selling warehouse |
| Under 1 month | Clear, return to supplier, or write off |
Thresholds vary by product and customer terms; many retailers refuse short-dated goods.
Recall readiness
When a manufacturer recalls batch B-402 you need to know within minutes which customers and invoices received it, how much is still in stock and what has been returned. With batch numbers on every invoice line, this is one lookup rather than a week of searching.
Checklist for distributors
- Batch and expiry captured on every receipt
- Expired goods refused
- FEFO picking default
- Daily near-expiry alert
- Clearance plan for stock at risk
- Recall trace tested twice a year
In NexoraIMS
All of the above are built in: batch tracking, FEFO, daily alerts, the Expiry, clearance and recall page with discount suggestions and the recall impact list. See batch and expiry tracking software.

Related guides: Inventory Management Software in India (complete guide)
Batch & Expiry Tracking SoftwareInventory Software for Pharma DistributorsInventory Software for Food & FMCGFIFO vs FEFO vs LIFOInventory Management for Pharma DistributorsDead Stock and Slow-Moving Inventory
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