on ‎2011 Aug 27 11:49 AM
Dear Experts.
I just wanted to know that which Issue Method is most effective, Manual or Backflush in regards of managing Inventory.
Which is being used mostly.
Regards,
Rajesh
Request clarification before answering.
Dear Rajesh,
Welcome you post on the forum
Regarding which Issue Method is most effective, I would say Backflush. This method allows you to receive production order without any manual issues of the components.
However, you can only use Manual method if you have to track components movements, or the various with BoM for each order is a concern, or you have Batch/Series managed components.
Thanks,
Gordon
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I don't think you can improve your current process by changing to the manual issue method. A strong control must be build between warehouse and workshop. Manual issue may have more problem if you don't have those procedures.
One thing you must be aware, by manual issue, system will not check anything for you. You can issue 10 times of material than the production order without problem.
All in all. This is a management issue. If you have a strong procedure to control inventory, either way will be fine. Backflush would be more productive. I can not imagine you have to manually issue hundreds of materials for every production order without problem.
Dear Experts
In this case (using Backflush) how to track the inventory for eg. Against particular Production Order which component (child parts) used, how to track this record.
And one more question, is this possible while booking GRPO manage item by batches (manual) & while using production order the same parts issue method by backflush???
Kindly give valuable suggestion
Thank You
Hi Rajesh,
Personally, I think you're the one who most suitable to answer this question. It highly depend on your case.
Using backflush obviously is more simple, you only need to receive the finished goods and system will automatically issue raw materials based on your BoM. But, the drawback is, if your business / production process usually resulting in lots of variance of raw material usage, you can't track the material usage variance per production order. So usually, usage of backflush need to be backed up by strong control using material balance reporting. Or your product usually doesn't cause lots of raw material usage variance.
While using manual, you need to record material usage as production issue document. Take more step, but the relation between raw material usage and production order is more clear and accurate. Personally, based on my experience, most of my clients use manual instead of backflush. But that's just me, according to most of my client's need.
Best Regards,
Hendry Wijaya
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Hi Hendry,
Thanks a lot for such prompt & helpful reply.
Yes, you are right about your personal opinion. actually I have upto 5 to 6 level BOM & many of them contains more than 150 items.
I am running a machine manufacturing company. And getting struck on raw materiel or semi finish material on various stages of production. Currently I am using Backflush Method which is obviously easy than Manual Method, but not much effective to track inventory.
Isn't it easy to track inventory with using manual method.
I was just wondering to change my issue method backflush to manual.
What you suggest?
Regards,
Rajesh
Hi,
Issue Method
Backflush u2013 after you report the completion of the parent item, the components are automatically issued to the production order.
Manual u2013 the components are manually issued to the production order, regardless of the issue of the product.
Note
You cannot use the backflush method for serial and batch-managed items.
The settings selection depends on the Business process followed by you. But if you have all the items which are serially managed or batch managed you cannot select the backflush method.
Kind Regards,
Jitin
SAP Business One Forum Team
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