Overview of material issue

The entering of issues as part of the order procedure for production orders is required to issue the necessary materials from the warehouse to the job shop. Issuing can be done manually or by the system while the estimate is being built up. When backflushing applies, issuing of inventory is automatically carried out.

Backflushing

The automatic issue of materials from inventory, or accounting for the hours spent manufacturing an item, based on theoretical usage and the quantity of the item reported as complete. For more information, refer to Backflushing.

Floor stock

A stock of inexpensive material present on the job shop that can be used in production without recording each issue of material individually. Floor stock is not backflushed and is not part of the estimated costs. To account for floor stock materials, a surcharge is added to the standard cost of an end item. A Kanban triggers the supply of floor-stock items to the job shop. You can create a warehousing order of type JSC Production in which you determine from which warehouse and to what work center the material must be shipped.

Controlled material issue

Material is issued from the warehouse to the job shop in a user-defined way. You can choose to take tight control over the issue process, or you can choose to control the issue process more loosely. In general, the issue of material goes through the following stages:

  • Allocate material in the warehouse

    A planned production order results in planned inventory transactions. These transactions are used for planning purposes by the MRP planning engine. As soon as a production order is released, warehouse orders are created, which means that the material in the warehouse is allocated for the production order.

    All materials specified in the bill of material (BOM) are allocated in the warehouses, which is reflected in the Estimated Materials (ticst0101m000) session.

    If you use job shop warehouses, you can determine the moment that the material is allocated in the job shop warehouse.

  • Specify quantity to be issued

    You must specify the material quantity that you want to issue. Depending on the setting of the Manual Issuing check box in the Production Order Parameters (tisfc0100s000) session, LN automatically specifies the planned quantity, or you can manually specify the material quantity. Note that the material quantity is still blocked in the warehouse.

  • Release material

    If you release the material in the warehouse, the material becomes unblocked, which is a signal for the warehouse employees to start the warehouse outbound procedure.

  • Carry out the warehousing procedure

    A user-defined warehouse outbound procedure is carried out.

  • Receive material

    The desired material quantity is received on the job shop.

To handle material from the warehouse to the job shop, and from the job shop to the warehouse, you can use the Material to Issue for Production Orders (ticst0101m100) session.

To handle material in a more detailed way, you must use the Production Warehouse Orders (timfc0101m000) session. Particularly in case of serialized items or lot-controlled items, it is recommended that you use this session. All actions on material are laid out in so-called production warehouse orders, which you can view in the Production Warehouse Orders (timfc0101m000) session.

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