There should be a way to register serial numbers (as well as batches) in a kind of a BOM structure to fulfill tracking requirements by item. With standard D365fO, it’s only possible with PO of quantity 1, which is a no go for customers.
The functionality should work without the need of registering serials on every logistics step (tracking dimension serial number is set to “active in sales process”).
There should be a separate table where child/parent relations of serial numbers and batches can be entered and manually edited at any time. Ideally there is a functionality of scanning GS1 barcodes which recognizes the item and records the serial number and/or batch information. Often there are external systems which deliver the information of serial numbers and batches, so an interface to external systems should exist.
Item tracing should also include the information of child/parent relations.