Lot traceability in Dynamics GP extends to the Bill of Materials feature in Dynamics GP Inventory Control. This allows you to track lot numbers from receipt of inventory, through assembly, and out to specific customer shipments.
The lot traceability is effective forward and back. For example, you can track a raw materials lot all the way to a specific customer who purchased a finished good containing the lot tracked component. This functionality would be effective for executing a product recall.
You can also use lot traceability to track a finished good back to specific lots consumed in the assembly process. This would be good to help pinpoint the source of product defects.
Here’s a quick video that shows this process: