We have the same issue. I am inclined to say it is a flaw/bug, but here is what 
I did:

1. Create the periodic inventory with the total amount of the product on the 
location (no prodlot entry possible), so the inventory should be the sum 
quantity of all the lots in the initial inventory
2. Confirm the inventory, so you'll get a posted inventory at the location.
3. Create an internal delivery from/to that location where you choose/enter the 
production lots an amounts for those production lots, effectively splitting the 
posted inventory into production lot quantities.

I am not sure if this is the intended procedure or even correct, but this seems 
to work.




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http://www.openobject.com/forum/viewtopic.php?p=36969#36969

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