A production batch links your raw materials to a batch, and defines a quantity of finished product that has been made. This finished good batch can then be dispatched out to customers. Using a batch record gives you full traceability from supplier through to customer.
Once a batch enters the processing stage, i.e. status is processing, it may be placed on hold. When a batch is on hold it cannot be dispatched. When the batch is ready to be taken off hold you can release it or dispose of it.