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Lot Number for R&D items

How do you handle the R&D aspect in NetSuite for lot number traceability, There are instances when the Item Number is not created but Item is ordered from the vendor (by Adding Generic Item to PO and modifying the description to tell vendor what needs to be ordered). Lets say they order 500, after about using half they realize they really like this and they can create what they need, then they want to convert that item into Lot numbered item so it can be traced.  I just want to know about how it was done at other companies on

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