---
title: "Lot settlement"
slug: "bc-lot-settlement"
tags: ["BC", "Business Central", "Food", "Introduction"]
updated: 2026-06-25T07:00:42Z
published: 2026-06-25T09:59:17Z
canonical: "docs.staedean.com/bc-lot-settlement"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.staedean.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Lot settlement

While the cost of purchased goods is typically known when a purchase order is placed, there are scenarios where this is not possible. This is particularly true when a company resells another vendor's items and pays the vendor based on the amount for which the items were sold. For example, Company A buys an item from Company B and then sells this item to its customers. Once Company A sells the item, it pays Company B based on the sales amount, after first taking a 10% commission. So if Company A sells the item for $100, it pays Company B $90.

Food Manufacturing & Distribution includes tools that help you calculate an item's purchase cost based on sales price. Note that an item must be lot-tracked to perform such calculations. A lot number is needed to establish the relationship between specific items and vendors. If items are not lot-controlled, there is no way to tell whether the item on a sales order was purchased from a particular vendor.

To view sales information about item lots (such as unit prices, quantities sold, and gross margins) see [View lot summary information](/business-central/docs/bc-view-lot-summary-information).

## Related

- [View lot summary information](/bc-view-lot-summary-information.md)
- [Food distribution](/bc-food-distribution.md)