Did you know you have multiple ways to process Production Orders in SAP B1? Some businesses who have a very short cycle time or simple manufacturing processes want to simply backflush materials and record the finished good all in one step. Others, need to monitor the process of the work order or have a large amount of Work In Progress (WIP) at any given time and need to issue materials in stages. SAP Business One allows you to work with either method.
If your main concern with processing Production Orders in SAP B1 is to get the correct costing into finished goods and have inventory moved properly out of stock and into finished products then the backflush method may be right for you.
Make sure that the Order has been released as you cannot process against it until it has been released.
To Backflush, each component must have the Issue Method set to “Backflush”. While this can be done on each line on the Production Order, if you are always using Backflush you can set the default on the Bill of Material and also on the Item Master. NOTE: You cannot backflush serialized or batch/lot tracked items.
To backflush material, simply right click in the header area of the Production Order and select Report Completion.
You will be presented with the Receipt from Production window, where you can enter the quantity of finished product that you are completing.
After adding this receipt, you will see that components have been issued sufficient to build the quantity completed.
Manual Issue Method
For the manual method, you must set the components’ Issue Method to manual for the ones you want to issue manually. You then right click and choose “Issue Components”
Once you have components issued and are completed with production, you can Report Completion as shown above in the Backflush section.
When you use the Manual Issue Method, you will need to have the ability to reconcile WIP to the general ledger. Unfortunately, SAP out of the box does not have a WIP report for this reconciliation. You can download a complimentary report here. This WIP report can easily be imported into SAP Business One.
For more information, contact us to discuss issues related to your situation.