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When implementing erp for manufacturing do you apply back flush, real time or batch posting to update raw material inventory?

When you are about to configure finished product in manufacturing module you have to decide how the BOM will pull necessary raw materials to build the finished product, when do you prefer back flush over real time and batch RM update?

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Question added by Hussam Murad , Managing Director , Block-chain Smart Solutions
Date Posted: 2013/10/17
Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

That depends on the type of your manufacturing and your manufacturing and fainancial business processes as defined in your critical requirements. back flush works with JIT processing, real time works well with descrete manufacturings and batch posting works will with process manufacturing.

shaheryar malik
by shaheryar malik , General Accountant , Valtorque Valves Trading LLC

It depends if you are using Just in Time operating enviroment or a LONGER operating enviroment as correct figures for Work In Process are not able to be recorded in case of Back-flush accounting approach.

 

A  very nice analysis of different scenarios is provided on wikipedia with i am sharing for your reference. I hope that it will work for you

 

http://en.wikipedia.org/wiki/Backflush_accounting

Yasir Ammar Mehmood
by Yasir Ammar Mehmood , Senior Accountant , Al-Mustufa Medical Centre

This totally depends on the type of organization. So there is no definite answer to this question.

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