Actual costing and backflushing

	Actual costing and backflushing If you use actual costing, the backflushing 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. Actual costing and backflushing for production orders with operations If you use actual costing in combination with backflushing for a production order with operations, LN uses a built-in check to minimize the risk of booking costs too late. The result is that the Report Operations Completed (tisfc0130m000) session is no longer used to post end items to inventory. Instead, the following procedure applies: Report a quantity as completed on the last operation, or report the whole last operation as completed by using the Report Operations Completed (tisfc0130m000) details session. Material and hours are backflushed (and costs are calculated), but the end items are not posted to inventory. Report the production order (partly) as completed by using the Report Orders Completed (tisfc0520m000) details session. The materials were already backflushed using the Report Operations Completed (tisfc0130m000) details session in the previous step. Reply Yes to the question whether the end item(s) must be posted to inventory. The receipt of the end items in the warehouse takes place. Note Preferably, the Backflushing Method field in the Shop Floor Control Parameters (tisfc0500m000) details session is Automatic so you do not forget to backflush in time. Actual costing and backflushing for production orders without operations If you use actual costing and backflushing, and you have NO operations defined for your production order, LN also uses a built-in check to minimize the risk of booking costs too late. The procedure is as follows: Because the production order has no operations, you cannot use the Report Operations Completed (tisfc0130m000) session. Therefore, report as complete part of the production order, or the whole production order by using the Report Orders Completed (tisfc0520m000) details session. Answer No 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. You must receive the end-items in inventory manually by using the Warehousing inbound procedure. For more information, see To handle warehousing orders. Note Preferably, the Backflushing Method field in the Shop Floor Control Parameters (tisfc0500m000) details session is Automatic so you do not forget to backflush in time.