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<ManualTopic ID="/baanerp/ti/onlinemanual/000342" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Actual costing and backflushing</Title>
		<Keyword><Level1>Backflushing</Level1>
			<Level2>actual costing</Level2>
		</Keyword>
		<Keyword><Level1>Actual costing</Level1>
			<Level2>backflushing</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>If you use actual costing, the <Link href="/baanerp/ti/glossary/glossary#Backflushing.ti" role="glossary">backflushing</Link> of material and/or hours can be a factor of complication. All backflushing must be performed before an end-item is received in the end-item warehouse. If backflushing is not performed before the end-item is received in the warehouse, the costs are not included in the end-item's cost price. Consequently, the costs are not included in inventory valuation.</Paragraph>
		<GeneralSection><SectionTitle>Actual costing and backflushing for production orders with operations</SectionTitle>
			<Paragraph>If you use actual costing in combination with backflushing for a production order with operations, SSA ERP uses a built-in check to minimize the risk of booking costs too late. The result is that the <GUIRef href="/baanerp/ti/sfc/tisfc0130m000" role="session">Report Operations Completed (tisfc0130m000)</GUIRef> session is no longer used to post end items to inventory. Instead, the following procedure applies:</Paragraph>
			<ProcedureList><ListItem>Report a quantity as completed on the last operation, or report the whole last operation as completed by using the <GUIRef href="/baanerp/ti/sfc/tisfc0130m000" role="session">Report Operations Completed (tisfc0130m000)</GUIRef> details session. Material and hours are backflushed (and costs are calculated), but the end items are not posted to inventory.</ListItem>
				<ListItem>Report the production order (partly) as completed by using the <GUIRef href="/baanerp/ti/sfc/tisfc0520m000" role="session">Report Orders Completed (tisfc0520m000)</GUIRef> details session. The materials were already backflushed using the <GUIRef href="/baanerp/ti/sfc/tisfc0130m000" role="session">Report Operations Completed (tisfc0130m000)</GUIRef> details session in the previous step. Reply <GUIRef href="/baanerp/ti/domains/yesno#yes" role="enum">Yes</GUIRef> to the question whether the end item(s) must be posted to inventory. The receipt of the end items in the warehouse takes place.</ListItem>
			</ProcedureList>
			<Note><SectionTitle>Note</SectionTitle>
				<Paragraph>Preferably, the <GUIRef href="/baanerp/ti/sfc/tisfc0100s000#tisfc000.bflm" role="formfield">Backflushing Method</GUIRef> field in the <GUIRef href="/baanerp/ti/sfc/tisfc0500m000" role="session">Shop Floor Control Parameters (tisfc0500m000)</GUIRef> details session is <GUIRef href="/baanerp/ti/domains/sfc.bflm#auto" role="enum">Automatic</GUIRef> so you do not forget to backflush in time.</Paragraph>
			</Note>
		</GeneralSection>
		<GeneralSection><SectionTitle>Actual costing and backflushing for production orders without operations</SectionTitle>
			<Paragraph>If you use actual costing and backflushing, and you have NO operations defined for your production order, SSA ERP also uses a built-in check to minimize the risk of booking costs too late. The procedure is as follows:</Paragraph>
			<ProcedureList><ListItem>Because the production order has no operations, you cannot use the <GUIRef href="/baanerp/ti/sfc/tisfc0130m000" role="session">Report Operations Completed (tisfc0130m000)</GUIRef> session. Therefore, report as complete part of the production order, or the whole production order by using the <GUIRef href="/baanerp/ti/sfc/tisfc0520m000" role="session">Report Orders Completed (tisfc0520m000)</GUIRef> details session. Answer <GUIRef href="/baanerp/ti/domains/yesno#no" role="enum">No</GUIRef> to the question of whether the end items must be posted to inventory. Backflushing must take place now, while the end item is not yet received in the warehouse.</ListItem>
				<ListItem>You must receive the end-items in inventory manually by using the <GUIRef href="/baanerp/wh" role="package">Warehouse Management</GUIRef> inbound procedure. For more information, see <Link href="/baanerp/wh/onlinemanual/000008" role="manual">To handle warehousing orders</Link>.</ListItem>
			</ProcedureList>
			<Note><SectionTitle>Note</SectionTitle>
				<Paragraph>Preferably, the <GUIRef href="/baanerp/ti/sfc/tisfc0100s000#tisfc000.bflm" role="formfield">Backflushing Method</GUIRef> field in the <GUIRef href="/baanerp/ti/sfc/tisfc0500m000" role="session">Shop Floor Control Parameters (tisfc0500m000)</GUIRef> details session is <GUIRef href="/baanerp/ti/domains/sfc.bflm#auto" role="enum">Automatic</GUIRef> so you do not forget to backflush in time.</Paragraph>
			</Note>
		</GeneralSection>
	</GeneralSection>
</ManualTopic>
