When it comes to using Backflush in SAP, there are a number of important aspects that should be taken into consideration. As companies grow, they start considering automating functions in order to bring quality organizational efficiencies to their business procedures, as process owners become used to processing their usual business transactions in SAP ERP.
These processes combine multiple transactions, thereby eliminating the need for undertaking manual steps. Two such techniques within the SAP ERP system are SAP Backflushing, and SAP Automatic Goods Receipt functions. This article would entail vital details on how to effectively utilize SAP Backflush to undertake automatic production processes.
Four Business Processes:
Before embarking on the discussion of how SAP Automatic Goods Receipt or SAP Backflushing function can optimize business processes, let’s find out about the four business processes that are undertaken by process owners on routine basis:
- Production order: It determines which type to produce and issue.
- Goods Issue: This happens when the materials necessary to create a product are being sent from the storage location where they are kept.
- Confirmation: The production supervision is tasked with recording the actual quantity of the product that has been manufactured.
- Goods Receipt: The production supervisor hands over the produced goods to the finished or semi-finished goods storage facilities. The warehouse person manually enters the goods receipt in the system, showing that the goods have been safely delivered.
Backflush in SAP
Backflushing gives the option to undertake Goods Issuance automatically, as the person monitoring goods records confirms that the product has been delivered. After that, the process owner can perform two business transactions at once. After the production has been confirmed, the process owners make use of Backflushing to automatically update the quantity of materials utilized in producing the order, and also their concerned financial values under the Cost of Goods Manufactured.
Automatic Goods Receipt:
Thanks to the Automatic Goods Receipt functionality in SAP, the production supervisor is capable of performing Goods Receipt automatically on recording confirmation. The usage of this functionality becomes greater when a number of different intermediate production steps are involved in the process, for instance the discrete manufacturing industries, and business process needs immediate storage of semi-finished or finished goods.
Based on the level of automation an organization is looking for, it has the option to implement one or both of these functions. By implementing both of these functions, there arises significant amount of reduction in the manual transactional steps from four to two, thereby ensuring organizational efficiency to the complete production execution process.
Backflushing is a function for what is known as post processing issues of materials. It can be set in three different areas in SAP, and it is in ERP, as it is an execution task. Backflushing is something that is frequently utilized in repetitive manufacturing. But, repetitive manufacturing with respect to backflushing presents less functionality in SAP ERP. With that said, using Backflush in SAP ERP to automate production processes is a great tool for the companies that are trying to induct automatic functionalities in their production processes.