Just got a very interesting question from an user, related with backflushing.
Let's begin with the definition of Backflush (setting available in the Item Card). This is the automatic deduction (consumption) of the components used in manufacturing triggered by the completion of the production order (status change to finished). Backflushing could lead to inaccurate inventory records. Consequently, it is only recommended when:
- component has a short or inmediate replenish lead lime
- component is not critical from a stock availability perspective
- manufactured item in the production order is also very short
The three above pre-conditions to use backflush lead to a minimize the consequences of having a inaccurate stock data from the time where components where actually consumed (mostly when releasing the production) to the moment where consumption was actually posted (when finishing the production order).
To emphasize the above is just APICS ... it is not Dynamics NAV interpretation.
So, user came with a question why backflushing is trigered when finishing the production order and not when posting the output. As described:
- component stock is not critical ... so it should not matter since there would be enough stock
- component has a very short or minimal lead time ... again, it should not matter when we record the consumption since replenishment will be done almost inmediately
- or, lead time of the manufactured item is short ... so, again, the moment when we record this should not matter since it should not take significant time from the released of the production order to when it is finished
