Batch number functionality not very clear


I am not very clear on how batch number works.If I create a Batch Number for a Item having a quantity of 10000 units and then when a customer orders 500 units from that item will I have to create new batch number for the quantity that gets delivered to customer.

Kindly explain the batch number with ERPNext point of view , as in how and where all they are using it .

Few questions
1 Have you ticked Yes to Has Batch number in Item page?
2 Have you ticked is Stock Item in Item page?
3 Have you made Purchase Receipt or Stock Entry of 10,0000 units?
4 Have you assigned a Batch number when you made Purchase Receipt/Stock Entry?

If you haven’t done any of the above then you cannot track the item inventory by batch number. This function is used for manufacturing or selling items with specific batches and corresponding expiry dates. The system always prompts user to choose batch number when making a Delivery note or POS payment. We use it extensively for our clients in food, pharmacy and optical solution. We have also used it for a client who sells wallpaper. They needed to ensure that every part of each full wallpaper during delivery is from one batch number from the factory. They had run in issue when one piece of a wallpaper was of different batch leading to inconsistency is the colour of the whole picture of one wall. They realised it only after all parts of the wallpaper were glued to one a large wall.


Thanks a tonn for the reply .Sorry, I got busy with some other task hence could not reply quickly