Food and Beverage Industry Solutions

Introduction

Food and beverage companies face stringent regulatory requirements for food safety, traceability, allergen management, and quality control. FDA Food Safety Modernization Act (FSMA), HACCP protocols, allergen labeling requirements, lot traceability mandates, temperature monitoring regulations, expiration date management, and recall readiness requirements demand automated validation beyond standard ERP capabilities.

Food industry-specific challenges include allergen cross-contamination prevention, lot genealogy tracking from ingredients through finished goods, temperature control throughout cold chain, shelf life and expiration management across distribution networks, food safety compliance documentation, recipe and formula management with allergen declarations, supplier GFSI certification verification, and rapid recall capability with consumer notification.

QUALIA Rule Engine enables food and beverage companies to automate safety and compliance validations while maintaining product quality and regulatory adherence.

Food industry validation requirements:

Allergen management and cross-contact prevention
Lot traceability with forward and backward tracking
Temperature monitoring across supply chain
Shelf life calculation and expiration enforcement
Food safety documentation and HACCP compliance
Recipe integrity with allergen declaration
Supplier qualification and GFSI certification
Rapid recall execution and traceability

Part 1: Allergen Management

Allergen Declaration and Labeling

FDA requires clear allergen identification for major food allergens (milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, sesame).

Validation Set: Item - Allergen Declaration - OnModify

Rule 1: Require Allergen Statement for Food Products

Table: Item (27)

Condition:

[27:CustomProductCategory] is in ('Food', 'Beverage', 'Ingredient')
AND [27:CustomAllergenReviewed]

Action - Message:

Type: Error

Message:
ALLERGEN DECLARATION REQUIRED

Item: [27:1] - [27:3]
Product Category: [27:CustomProductCategory]

FDA requires allergen declaration for all food products containing major food allergens.

Major Food Allergens (FDA):
☐ Milk (dairy)
☐ Eggs
☐ Fish (e.g., bass, flounder, cod)
☐ Crustacean shellfish (e.g., crab, lobster, shrimp)
☐ Tree nuts (e.g., almonds, walnuts, pecans)
☐ Peanuts
☐ Wheat
☐ Soybeans
☐ Sesame

Allergen Declaration Options:
1. Contains: Product contains allergen as ingredient
2. May Contain: Risk of cross-contact during manufacturing
3. Manufactured in Facility: Facility processes allergen (lower risk)
4. Free From: Product does not contain allergen

Required Actions:
1. Review product ingredients and manufacturing process
2. Identify all allergen sources
3. Assess cross-contact risk
4. Complete allergen declaration checklist
5. Update label copy with allergen statement
6. Set Allergen Reviewed flag

Label Statement Format:
"Contains: [List of allergens]"
"May contain: [Allergens from cross-contact risk]

Rule 2: Validate Ingredient Allergen Inheritance

Validation Set: BOM - Allergen Propagation - OnModify

Source References:

1. Item (27) - Parent finished good
   Link via: [BOM:ParentItemNo] = [27:1]

2. Item (27) - Component ingredients
   Link via: [BOMLine:ComponentItemNo] = [27:1]

Condition:

EXISTS(BOMLine WHERE [Component:CustomContainsMilk] is true)
AND [Parent:CustomContainsMilk]

Action - Message:

Type: Error

Message:
ALLERGEN DECLARATION MISMATCH

Finished Good: [Parent:Description]

Allergen Inheritance Error:
One or more ingredients contain allergens not declared on finished good.

Allergen Discrepancies:
[IF(Component has Milk but Parent doesn't, '• Milk - From ingredient: [Component:Description]', '')]
[IF(Component has Eggs but Parent doesn't, '• Eggs - From ingredient: [Component:Description]', '')]
[IF(Component has Peanuts but Parent doesn't, '• Peanuts - From ingredient: [Component:Description]', '')]
[Continue for all allergens...]

Ingredients with Allergens:
[FOR EACH BOMLine WHERE Component has allergens:
  Component: [Component:Description]
  Quantity: [Quantity]
  Allergens: [List of allergen flags]

Cross-Contact Prevention

Rule 3: Allergen Scheduling and Changeover

Validation Set: Production Order - Allergen Sequencing - OnRelease

Source References:

1. Item (27) - Current production item
   Link via: [ProdOrder:ItemNo] = [27:1]

2. Production Order (5405) - Previous production
   Link via: [CurrentProdOrder:WorkCenter] = [PrevProdOrder:WorkCenter]
   Reference Filters:
     [PrevProdOrder:EndingDateTime] > [CurrentProdOrder:StartDateTime] - 24h
   Order By: [PrevProdOrder:EndingDateTime]

Condition:

[PrevItem:CustomContainsPeanuts] is true
AND [CurrentItem:CustomPeanutFree] is true
AND [CurrentItem:CustomRequiresAllergenCleaning]

Action - Message:

Type: Error

Message:
ALLERGEN CROSS-CONTACT RISK

Work Center: [ProdOrder:WorkCenter]

Previous Production:
Item: [PrevItem:Description]
Ended: [PrevProdOrder:EndingDateTime]
Allergens: [List allergens in previous item]

Current Production:
Item: [CurrentItem:Description]
Scheduled Start: [CurrentProdOrder:StartDateTime]
Allergen-Free Claims: [CurrentItem:CustomAllergenFreeClaims]

CROSS-CONTACT RISK: Peanut allergen residue from previous production.

Required Actions Before Running Peanut-Free Product:
☐ Complete allergen cleaning procedure
☐ Disassemble and clean all product contact surfaces
☐ Use dedicated allergen cleaning tools
☐ Rinse and sanitize equipment
☐ Conduct environmental swab testing
☐ Verify negative allergen test results
☐ Document cleaning in allergen log
☐ Supervisor sign-off on cleaning verification

Cleaning Procedure: [Link to allergen cleaning SOP]

Allergen Scheduling Best Practices:
1. Schedule allergen products at end of production week
2. Run products in order: Free-from → Contains allergen
3. Allow 24-hour cleaning window after high-allergen products
4. Dedicate equipment to allergen products when possible

Cannot proceed without documented allergen cleaning and verification.

Quality Assurance Approval Required: [QA contact]

Part 2: Lot Traceability

One-Up, One-Down Traceability

FDA requires food companies to identify immediate source and recipient of food products.

Validation Set: Item Ledger Entry - Lot Traceability - OnPost

Rule 1: Enforce Lot Number Assignment

Table: Item Ledger Entry (32)

Source References:

1. Item (27)
   Link via: [32:5] = [27:1]

Condition:

[27:CustomFoodProduct] is true
AND [32:CustomLotNo] is ''
AND [32:8]

Action - Message:

Type: Error

Message:
LOT NUMBER REQUIRED FOR FOOD TRACEABILITY

Item: [27:3]
Transaction Type: [32:7]
Quantity: [32:8]
Location: [32:2]

FSMA Section 204 requires lot-level traceability for food products on Food Traceability List.

Lot Number Requirements:
- Unique identifier for specific production lot
- Links raw materials to finished goods
- Enables forward and backward traceability
- Required for rapid recall

Lot Number Format:
[Production Date YYMMDD]-[Line]-[Sequence]
Example: 250615-Line1-042

For This Transaction:
[IF([32:7] is 'Purchase',
  'Enter vendor lot number from receiving documentation',
  IF([32:7]

Rule 2: Link Production Lots to Ingredient Lots

Validation Set: Production Order - Lot Genealogy - OnFinish

Source References:

1. Item Ledger Entry (32) - Production output
   Link via: [ProdOrder:No] = [32:OrderNo]
   Reference Filters:
     [32:7] is 'Output'

2. Item Ledger Entry (32) - Component consumption
   Link via: [ProdOrder:No] = [32:OrderNo]
   Reference Filters:
     [32:7] is 'Consumption'

3. Lot Genealogy (Custom Table)
   Link via: [32:CustomLotNo] = [LotGen:FinishedGoodLot]

Condition:

Action - Message:

Type: Error

Message:
LOT GENEALOGY REQUIRED

Production Order: [ProdOrder:No]
Finished Good: [Item:Description]
Output Lot: [OutputEntry:CustomLotNo]
Quantity: [OutputEntry:8]

Lot traceability requires linking finished good lots to ingredient lots.

Component Lots Used:
[FOR EACH ConsumptionEntry:
  Component: [Item:Description]
  Lot Number: [CustomLotNo]
  Quantity: [Quantity]
  Supplier: [If purchased, Vendor:Name]
]

Lot genealogy enables:
- Forward traceability: Where was this ingredient used?
- Backward traceability: What ingredients went into this finished good?
- Recall scope determination: All affected lots
- Root cause analysis: Problem ingredient identification

System must record:
- Finished good lot number
- All ingredient lot numbers consumed
- Production date and time
- Equipment used
- Operator
- Yield information

Complete lot genealogy before closing production order.

In case of recall: Must be able to identify all finished good lots containing specific ingredient lot within 24 hours.

Lot Genealogy Entry Screen: [Navigation path]

Rapid Recall Capability

Rule 3: Simulate Recall Traceability

Validation Set: Item - Recall Simulation - Scheduled Quarterly

Source References:

1. Lot Genealogy (Custom Table)
   Link via: [Item:No] = [LotGen:ItemNo]

2. Sales Line (37) - Shipments
   Link via: [LotGen:FinishedGoodLot] = [SalesLine:LotNo]

3. Customer (18)
   Link via: [SalesLine:SellToCustomerNo] = [18:1]

Condition:

[Item:CustomFoodTraceabilityList] is true
AND ([T] - [Item:CustomLastRecallSimulation]

Action - Email:

To: quality.assurance@company.com, operations.manager
Subject: Traceability Exercise Required - [Item:Description]
Body:
QUARTERLY TRACEABILITY EXERCISE DUE

Item: [Item:Description]
Last Exercise: [Item:CustomLastRecallSimulation]
Days Since: [[T] - [Item:CustomLastRecallSimulation]]

FSMA 204 requires companies to conduct routine traceability exercises to ensure recall readiness.

Exercise Scenario:
Select random finished good lot and demonstrate:

BACKWARD TRACEABILITY (One-Down):
Identify all ingredient lots used to make selected finished good lot:
- Raw materials and lots
- Suppliers
- Receiving dates
- Quantities

FORWARD TRACEABILITY (One-Up):
Identify all locations where finished good lot was sent:
- Customers
- Distribution centers
- Lot quantities shipped
- Ship dates
- Customer contact information

Time Requirement: Complete within 24 hours

Exercise Documentation:
☐ Lot number selected
☐ Production date
☐ All ingredient lots identified
☐ All customers/locations identified
☐ Quantities at each location
☐ Contact information verified
☐ Gaps or issues identified
☐ Corrective actions planned
☐ Management review

Schedule traceability exercise and document results.

Mock Recall Form: [Template link]
Traceability Coordinator: [Contact]

Part 3: Temperature Control and Cold Chain

HACCP Critical Control Point Monitoring

Temperature monitoring is critical control point in HACCP plans.

Validation Set: Warehouse Receipt - Temperature Verification - OnPost

Rule 1: Validate Receiving Temperature

Table: Purchase Line (39)

Source References:

1. Item (27)
   Link via: [39:6] = [27:1]

2. Temperature Log (Custom Table)
   Link via: [39:DocumentNo] = [TempLog:ReceiptNo]

Condition:

[27:CustomRefrigerated] is true
AND ([TempLog:Temperature] < [27:CustomMinTemp]
     OR [TempLog:Temperature] > [27:CustomMaxTemp]

Action - Message:

Type: Error

Message:
TEMPERATURE DEVIATION - PRODUCT REJECTION

Receipt: [39:DocumentNo]
Item: [27:3]
Vendor: [PurchaseHeader:VendorName]
Quantity: [39:15]
Lot Number: [39:CustomLotNo]

Temperature Specification:
Required Range: [27:CustomMinTemp]°F to [27:CustomMaxTemp]°F
Actual Temperature: [TempLog:Temperature]°F
Deviation: [Deviation amount]°F

HACCP Critical Limit Violation

Food Safety Risk:
[IF([TempLog:Temperature] > [27:CustomMaxTemp],
  'Temperature abuse allows bacterial growth.
   Products may be unsafe for consumption.
   Shelf life compromised.',
  'Freezing damage may affect product quality and texture.'
)]

Required Actions (HACCP Corrective Action):
☐ Reject entire shipment
☐ Place product on hold
☐ Tag with "DO NOT USE - TEMP DEVIATION"
☐ Segregate in quarantine area
☐ Notify Quality Assurance
☐ Notify vendor of rejection
☐ Document temperature deviation
☐ Complete corrective action report
☐ Request vendor corrective action
☐ Initiate return/credit process

Do NOT accept product with temperature deviation.

Acceptance Risk:
- Food safety hazard
- Regulatory violation
- Customer illness
- Product recall
- FDA inspection findings
- Brand reputation damage

Quality Manager Override Required: [If any exception]

HACCP Plan: [Link to refrigerated receiving CCP]
Temperature Monitoring SOP: [Document number]

Rule 2: Cold Chain Documentation

Validation Set: Transfer Order - Cold Chain Integrity - OnPost

Condition:

EXISTS(TransferLine WHERE Item.Refrigerated AND Item.Frozen)
AND [TransferHeader:CustomTransitTimeHours] > [Item:CustomMaxTransitTime]

Action - Message:

Type: Warning

Message:
COLD CHAIN INTEGRITY CONCERN

Transfer Order: [TransferHeader:No]
From: [TransferHeader:FromLocation]
To: [TransferHeader:ToLocation]
Transit Time: [TransferHeader:CustomTransitTimeHours] hours

Temperature-Sensitive Products:
[FOR EACH TransferLine WHERE Item requires temperature control:
  Item: [Item:Description]
  Quantity: [Quantity]
  Temp Requirement: [Item temp range]
  Max Transit: [Item:CustomMaxTransitTime] hours
  This Transit: [Actual transit hours]
  Overage: [Overage hours]
]

Cold Chain Requirements:
- Maintain temperature throughout transport
- Minimize out-of-cooler time
- Use temperature monitoring devices
- Document continuous temperature
- Complete transfer within time limit

Actions Required:
1. Verify refrigerated transport equipment
2. Attach temperature data logger to shipment
3. Minimize loading dock time
4. Pre-cool transport vehicle
5. Load cold products last
6. Route for minimum transit time
7. Provide temperature log to receiving location

Receiving Location Must:
- Check temperature immediately upon arrival
- Reject if out of specification
- Download and review data logger
- Document receiving temperature

Cold Chain Failure Consequences:
- Product spoilage
- Reduced shelf life
- Food safety risk
- Customer rejection
- Product disposal loss

Proceed with enhanced cold chain monitoring.

Transport Temperature Monitoring Plan: [SOP reference]

Part 4: Shelf Life and Expiration Management

Shelf Life Calculation and FEFO

Food products require careful expiration date management and First Expired, First Out rotation.

Validation Set: Item Ledger Entry - Shelf Life Calculation - OnPost

Rule 1: Calculate Expiration Date

Source References:

1. Item (27)
   Link via: [32:5] = [27:1]

Condition:

[27:CustomFoodProduct] is true
AND [32:CustomExpirationDate] is ''
AND [32:7]

Action - Assign:

Target: [32:CustomExpirationDate]
Formula: 
  IF([32:7] is 'Purchase',
    [32:CustomManufactureDate] + [27:CustomShelfLifeDays],
    [32:PostingDate] + [27:CustomShelfLifeDays]
  )

Target: [32:CustomSellByDate]
Formula: [32:CustomExpirationDate] - [27:CustomSellByOffset]

Target: [32:CustomBestByDate]
Formula: [32:CustomExpirationDate] - [27:CustomBestByOffset]

// Calculate product dating based on shelf life

Then Validate:
IF [32:CustomExpirationDate] < [T]

Rule 2: FEFO Enforcement

Validation Set: Sales Line - FEFO Validation - OnPost

Source References:

1. Item Ledger Entry (32) - Available inventory
   Link via: [37:No] = [32:5]
   Reference Filters:
     [32:50] > 0  // Remaining quantity
     [32:2] = [37:LocationCode]

Condition:

EXISTS(32 WHERE [32:CustomExpirationDate] < [37:SelectedLot:ExpirationDate]
           AND [32:50] >= [37:Quantity]

Action - Message:

Type: Warning

Message:
FEFO VIOLATION - EARLIER EXPIRATION AVAILABLE

Item: [37:Description]
Location: [37:LocationCode]

Selected Lot:
Lot Number: [37:SelectedLot:LotNo]
Expiration: [37:SelectedLot:ExpirationDate]
Quantity: [37:Quantity]

Earlier Expiring Lots Available:
[FOR EACH 32 WHERE ExpirationDate < Selected ORDER BY ExpirationDate:
  Lot: [32:CustomLotNo]
  Expiration: [32:CustomExpirationDate]
  Days Until Exp: [[32:CustomExpirationDate] - [T]]
  Qty Available: [32:50]
]

First Expired, First Out (FEFO) Policy:
Ship oldest product first to minimize waste and ensure quality.

Exceptions Requiring Approval:
- Customer-specific lot request
- Quality hold on earlier lot
- Reserved inventory for other order

Select earlier expiring lot or document exception.

Inventory Aging Report: [Link to report]

Customer Shelf Life Requirements

Rule 3: Validate Remaining Shelf Life for Customer

Validation Set: Sales Order - Customer Shelf Life - OnPost

Source References:

1. Customer (18)
   Link via: [36:2] = [18:1]

2. Item (27)
   Link via: [37:6] = [27:1]

Condition:

[37:LotExpirationDate] - [T] < [18:CustomMinShelfLifeDays]

Action - Message:

Type: Error

Message:
INSUFFICIENT REMAINING SHELF LIFE

Customer: [18:2]
Item: [27:3]
Lot: [37:LotNo]

Shelf Life Status:
Product Expiration: [37:LotExpirationDate]
Remaining Days: [[37:LotExpirationDate] - [T]]
Customer Minimum: [18:CustomMinShelfLifeDays] days

Shortfall: [[37:LotExpirationDate] - [T] - [18:CustomMinShelfLifeDays]] days

Customer Requirement:
[18:2] requires minimum [18:CustomMinShelfLifeDays]

Part 5: Recipe and Formula Management

Recipe Integrity and Allergen Declaration

Recipe changes must maintain food safety and label accuracy.

Validation Set: BOM - Recipe Change Control - OnModify

Rule 1: Require Approval for Formula Changes

Condition:

({BOM:ComponentItemNo} <> [BOM:ComponentItemNo]
 OR {BOM:Quantity} <> [BOM:Quantity])
AND [BOM:CustomChangeApproved]

Action - Message:

Type: Error

Message:
FORMULA CHANGE APPROVAL REQUIRED

Finished Good: [BOM:ParentItem:Description]
Formula: [BOM:VersionCode]

Change Detected:
[IF(ComponentItemNo changed,
  'Component Changed From: ' + {Old component} + ' To: ' + [New component],
  'Quantity Changed From: ' + {Old quantity} + ' To: ' + [New quantity]
)]

Formula Change Impact Assessment:
☐ Allergen declaration impact
☐ Nutritional facts impact
☐ Ingredient statement order
☐ Label copy changes required
☐ Regulatory notification required
☐ Supplier approval needed
☐ Customer notification needed
☐ Cost impact
☐ Sensory/quality impact
☐ Process parameter changes

Required Approvals:
☐ Quality Assurance Manager
☐ Regulatory Affairs
☐ Research & Development
☐ Operations Manager

Formula Change Control Procedure:
1. Complete formula change request form
2. Impact assessment by cross-functional team
3. Sensory evaluation if formula affects product characteristics
4. Label review and updates
5. Regulatory compliance verification
6. Customer notification if required
7. Approvals obtained
8. Effective date set
9. Training completed
10. Implementation verified

Formula changes affect:
- Product safety and quality
- Label accuracy and compliance
- Customer expectations
- Regulatory status

Cannot proceed without approved change control documentation.

Change Control Form: [Link to form]

Summary and Key Takeaways

This guide covered food and beverage industry validations:

Allergen management with declaration enforcement and cross-contact prevention
Lot traceability forward and backward tracking for rapid recall
Temperature control cold chain integrity and HACCP monitoring
Shelf life management expiration calculation and FEFO enforcement
Recipe integrity formula change control and regulatory impact

Food safety compliance benefits:

Automated allergen risk prevention
Complete lot genealogy for recall readiness
Temperature deviation detection and rejection
Expired product prevention
Formula change control
Regulatory compliance assurance
Consumer protection

Implementation considerations:

Integration with quality management systems
Temperature monitoring device interfaces
Recipe and formula PLM systems
Label management systems
Traceability exercise automation
Recall management workflows

Related topics:

Blog 041: Healthcare Solutions (similar traceability requirements)
Blog 033: Performance Optimization (high-transaction volume industries)
Blog 036: Manufacturing Solutions (production and BOM patterns)
Blog 037: Distribution Solutions (temperature-controlled logistics)

This blog is part of the QUALIA Rule Engine series for Microsoft Dynamics 365 Business Central. Follow along as we explore business rule automation patterns.

Business Central

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Advanced Table Linking and Cross-Record Validation

Aggregate Calculations Across Related Records: Summing, Counting, and Analyzing Data

Automated Email Notifications from Business Rules

Automatically Setting Field Values with Assign Actions

Building an Approval Workflow: When Orders Need Manager Sign-Off

Building Commission Calculation Rules for Sales Teams: Automating Sales Incentives

Building Multi-Condition Validation Rules: Understanding Independent Condition Evaluation

Construction and Project-Based Industry Solutions

Creating Your First Business Rule: A Step-by-Step Beginner's Guide

Custom Validation Messages for Business Rules

Distribution and Logistics Industry Solutions

Energy and Utilities Industry Solutions

Financial Services Industry Solutions

Food and Beverage Industry Solutions

Government and Public Sector Procurement Solutions

Healthcare and Medical Supply Industry Solutions

How to Implement Credit Limit Validation in 10 Minutes

How to Link Multiple Tables for Complex Multi-Table Validation

How to Prevent Infinite Loops in Your Business Rules

How to Prevent Negative Inventory with Business Rules

How to Validate Customer Data Before Order Creation

Implementing Discount Authorization Rules: Control Pricing with Confidence

Implementing Required Field Validation: Ensuring Data Completeness

Interactive Confirmation Dialogs in Business Rules

Manufacturing Industry Solutions

Non-Profit and Grant Management Solutions

Performance Optimization for Business Rules

Pharmaceuticals and Life Sciences Solutions

Preventing Data Entry Errors: Validation Best Practices

Professional Services Industry Solutions

Real Estate and Property Management Solutions

Retail and Point-of-Sale Industry Solutions

Rule Groups and User Permissions: Controlling Who Gets Which Rules

Rule Set Organization and Maintenance

Rule Versioning and Change Management

Testing and Debugging QUALIA Business Rules

Transportation and Logistics Industry Solutions

Understanding the Rule Execution Pipeline: From Trigger to Action

Understanding Validation Scenarios and Timing

Using Old Value Placeholders for Change Detection and Validation

Understanding the Rule Execution Pipeline: From Trigger to Action

QUALIA Rule Engine operates as a sophisticated event-driven system that intercepts data changes in Business Central and evaluates configured business rules in real-time. Understanding the execution pipeline—how a database operation flows through trigger detection, scenario evaluation, condition processing, and action execution—is essential for advanced rule design, performance optimization, and troubleshooting.

Energy and Utilities Industry Solutions

Energy and utilities companies face complex regulatory requirements including FERC compliance, NERC reliability standards, environmental regulations, rate case filings, renewable energy credit tracking, interconnection agreements, demand response programs, and outage management protocols. Asset-intensive operations with critical infrastructure, regulatory cost recovery mechanisms, time-of-use pricing structures, and customer meter-to-cash processes demand automated validation beyond standard ERP capabilities.

Real Estate and Property Management Solutions

Real estate and property management companies require specialized business rules for lease administration, tenant billing, common area maintenance (CAM) reconciliation, security deposit tracking, maintenance workflow management, vacancy management, rent escalation calculations, and portfolio performance analysis. Multi-entity property ownership structures, percentage rent calculations, operating expense recoveries, lease abstraction accuracy, and compliance with lease accounting standards (ASC 842 / IFRS 16) demand automated validation beyond standard ERP capabilities.

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