MRP Parts

There are two ways to record component issues for an MRP part:

·      Requisitions

·      Simultaneous-issue-and-receipt transactions ("backflushing")

Requisitions

When a manufacturing operation requires a component, it sends a requisition to the inventory location where the component is stocked.  The material is issued, and an inventory transaction is entered to record the issue.  Inventory is issued to a specific shop floor location and for a specific manufacturing order.  When the finished item is received into inventory, another transaction is entered to record the receipt.  The receipt is recorded against the manufacturing order.  To select the requisition method, define the part with an issue code of "R".

Simultaneous-issue-and-receipt (SIR) transactions

SIR transactions are also known as backflushing.  No transaction is entered when the component is issued.  When the finished item is received, a single transaction is entered to record the receipt and to update the component's inventory balance.  The component's balance is reduced by the number of components that were used to make the finished item.  For example, if a bicycle is received into inventory, a SIR transaction would reduce the system's inventory balance of wheels by two.  The number of components to backflush is determined from the Quantity Per Batch field and the scrap factor on the parent's product structure record.  Both the receipt and issue are recorded simultaneously for a specific manufacturing order.

Although the requisition method offers more control over inventory than SIRs, it also results in more inventory transactions.  SIR tracking should be used when less control is required over issues.

You specify which method should be used for each part on the Control screen of the Part Master Maintenance conversation.  If you are using SIR transactions, you must enter a SIR location and an "S" issue code.  The SIR location is the inventory area whose balance will be decreased automatically when the receipt is recorded. 

Multiple Location Backflushing

For any given manufacturing order, you may wish to backflush items from several different locations.  Using multiple location backflushing allows you to assign components multiple stock locations from which their inventory can be relieved.  With this processing, you can automatically backflush what has already been consumed or produced at an operational level rather than waiting until the final receipt of the parent part.  You can also assign specific stock locations to particular workcenters for individual components of a build-thru parent part.  These stock locations will override the component part's SIR location.  For more information about multiple location backflushing, please refer to the Setting Up Backflushing key concept within this manual.