What is and when we will be using backflushing consumption? Method for issuing (reducing on-hand quantities) materials to a manufacturing order. With backflushing, the material is issued automatically when production is posted against an operation. The backflushing program will use the quantity completed to calculate through the bill of material the quantities of the components used, and reduce on-hand balances by this amount.
Things to consider …
- When manufacturing requires long lead time: this will mean that stock won’t be correct from the time it is actually used in the shop floor until production is finished (and consumption is backflushed)
- Check impact on inventory accounts, on hand balance, planning
- Items should be those where we always have inventory for
- When we are using item tracking on the components: this means that lot/serial needs to be entered
- BOM and routing accuracy is critical since it triggers consumption
- If this is a multi-level and partner customized to backflush the entire bom levels: why not using a production order with one single line?
What NAV design is on this topic? Manufacturing Training material provides the following explanation: When you use the backward method, this is based on actual quantities. Having this in mind, if you scrap, you might want to take care of this since backflushing is based on actual quantities and once you manually post scrap, NAV expects you to manually post actual consumption as well.