Defining General Settings for Batch Numbers 
You can define batch numbers for all or specific items in inventory.
Note
The per item settings defined in the Item Master Data window overrides the settings defined in the General Settings window.
During the creation of batch number-managed items you can do the following:
Specify the default management method for batch numbers for an item
Specify the status of the batch
Note
Items managed by serial and batch numbers must be inventory items (they cannot be only sales items or purchase items). Therefore, the selected item cannot be defined as a phantom item.
Procedure
Choose
Administration 
System Initialization General Settings Inventory tab Items 
tab.Select one of the following methods for assigning batch numbers to items from the Management Method dropdown list:
On Every Transaction - Definition of batches for an item is mandatory for every inventory receipt and issue document.
On Release Only - Definition of batches for an item is mandatory for inventory issue documents only. It is optional for other transactions.
Choose one of the following options from the Basic Setting for Batch Status dropdown list:
Released - This status lets you work fully with the batch.
Locked - This status lets you work with the batch in inventory documents only. These documents include inventory transfers, goods, and production issues.
Not Accessible - This status defines batches in the mid production process or during the quality check, and, therefore, such batches cannot be released in sales documents or in an A/P credit memo. However, they can be released in inventory documents, such as inventory transfers, in a similar way to a locked batch.
This status is used mainly in reports, to distinguish between locked batches and not accessible ones.
NoteThe status you choose appears as the default in the Item Master Data window when you create new batches.
End of the note.To save your changes, click the Update button.
You must define each item you want managed by batches. Choose
Inventory Item Master Data and choose the General tab.Choose an existing item or create a new one.
To manage the item by batch numbers, from the Manage Item by dropdown list, choose Batches.
The Management Method field is displayed only if the option to manage the item by serial numbers or batches was selected in the Manage Item by dropdown list. The default for new items is set according to the definition in the General Settings window. For more information, see General Settings: Inventory Tab.
Choose one of the following options from the Management Method dropdown list:
On Every Transaction - Batch numbers must be selected for an item for every inventory receipt and issue document.
On Release Only - Batch numbers must be selected for an item for inventory issue documents only.
To save your changes, choose the Add button.