Run the Backflush process to automatically make postings against a production order based on preliminary data.
If you have produced a part before, you can often accurately predict the quantities, hours and costs required for the part. To avoid having to manually specify all part issues and all operation and equipment costs, you could, in such cases, let the software make postings automatically based on the preliminary data.
You still have the option of manually making additional entries, for example to record the issue of a high cost-price part of which you have used another quantity than the preliminary quantity.
Note: If the actual usage differs from the preliminary usage, backflushing may have undesirable financial and logistic consequences. The reason for this is that backflushing is based on the assumption that the actual usage is virtually equal to the usage determined in the preliminary costing phase.
When backflushing a production order, the following activities can be performed automatically:
The selected production order has not yet been confirmed as complete.
In the Parts module on the Logistics tab, the Process production receipts check box under the Backflush heading is selected for the part for which the production receipt is recorded.
If, on the Backflush form, you choose to process production receipts, in actual fact the Production receipts process is performed. The preliminary production quantity will be reported as the actual quantity produced and will be recorded. The results of this are displayed on various forms, including the AC Production file revenues - Production receipts form.
Once you have processed production receipts for a stock order using the backflushing method, the reported quantity will be added to the stock of the relevant part. For this process, the program uses the default warehouse location specified for the part in the Parts module.
If you choose to also confirm the production order as complete when running the Backflush process, the Complete check box will be selected for the production order, and the backflushing date will be filled in.
The relevant part line has not yet been confirmed as complete.
In the Parts module on the Logistics tab, the As part calculation line check box under the Backflush heading is selected for the part specified on the part line.
The part specified on the part line meets the selection criterion specified in the Process lines field of the Backflush form.
Line processing basis
The selected part lines can be posted based on the preliminary production order quantity or the actual production order quantity.
To use the actual quantity as the basis, this quantity must have been recorded using Production receipts, whether or not through backflushing. Otherwise, Isah will not know the actual quantity produced.
When the actual quantity produced differs from the preliminary quantity, Isah will use the ratio between the expected production quantity and the actual production quantity to calculate the correct part issue quantity. For example, if you have produced 20 pieces, and your original preliminary costing was for 10 pieces, the part issues for this production order will be doubled.
Process lines
If, on the Backflush form, you choose to process part lines, in actual fact parts are issued to a production order.
The preliminary quantity (corrected by the actual quantities produced, where applicable; see the Line processing basis section) is reported as actually used. The stock of the parts that have been issued through backflushing will be reduced by the quantity issued. The corresponding costs will be posted.
If you choose to also confirm the selected part lines as complete when running the Backflush process, the Complete check box next to Stock will be selected for these lines on the Origins tab in the part calculation for the production order, and the backflushing date will be filled in.
The relevant operation line has not yet been confirmed as complete.
At least one of the Machine hours, Labor hours or Overhead check boxes under the Backflush heading is selected for the relevant capacity group or machine. A machine has a higher priority than a capacity group. This means that if both a machine and a capacity group have been specified for an operation, it will be sufficient if one of the check boxes is selected for the machine only.
Line processing basis
The selected operation lines can be posted based on the preliminary production order quantity or the actual production order quantity.
To use the actual quantity as the basis, this quantity must have been recorded using Production receipts, whether or not through backflushing. Otherwise, Isah will not know the actual quantity produced.
When the actual quantity produced differs from the preliminary quantity, Isah will use the ratio between the expected production quantity and the actual production quantity to calculate the correct number of hours to be recorded. For example, if you have produced 20 pieces, and your original preliminary costing was for 10 pieces, double the hours will be recorded against this production order. Setup and adjustment times for operations are not increased of reduced, as the setup or adjustment of a machine will take place only once and is independent of the operation cycle time. Setup and adjustment times are counted once each time an operation line is posted by the 'Backflush' process.
Process lines
If, on the Backflush form, you choose to process operation lines, in actual fact the hour posting process is performed.
The preliminary number of hours (corrected by the actual figures, where applicable; see the Line processing basis section) is registered as the actual number of working hours. These hours will be posted, multiplied by the labor, machine and overhead rate. This operation takes into account the machine and capacity group settings and the value of the Process lines field on the Backflush form.
Note: Sometimes you will backflush operations when hour lines have already been manually posted against an operation. When more hours have been posted manually than were originally determined in the preliminary costing phase, this manually specified number will remain unchanged and will be used as the basis for actual costing. If the preliminary costing figures have more hours than manually specified on the hour line, however, the manually specified number of hours will be overwritten by the preliminary number of hours when the operations are backflushed.
Therefore, to post (major) differences against hour lines that are subject to backflushing, you need to backflush first and then post the additional hours.
Also the operation related to the equipment is processed using the backflushing process. As equipment depreciation takes place by hour postings, the actual costs cannot be calculated automatically for individual items of equipment.
The operation line relating to the equipment has not yet been confirmed as complete.
If, on the Backflush form, you choose to process equipment lines, in actual fact the equipment depreciation by time registration procedure is performed.
Production receipts