If the batch expiration date and the next inspection date are the same, and you run the QA07 program once, the material will go to blocked stock and no inspection lot will ever be generated.
This is because the QA07 is a two part program. The blocking part runs first. The inspection lot creation runs second. Since the material moves to blocked stock, when the inspection lot section runs, it does not see it as the program does not consider blocked stock.
To resolve the issue run QA07 twice. Once with just the inspection lot creation parameters set. This will then create the inspection lots.
Run it a second time with only the blocking parameters set.
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