Backflush with Activity Correction (SAP Library

Backflush with Activity Correction

Use

You can use this function when posting the goods receipt for a finished product (assembly) if the actual data of the activities used in production differs from the data specified in the routing. You can change the times of an activity, you can delete an activity or you can add another activity.

Integration

You can use this function for make-to-stock production, make-to-order production, production by lots or for kanban materials. You can also use it for reporting point backflushing.

The costs resulting from the activities are updated in Cost Object Controlling (usually at a product cost collector.)

Prerequisites

Customizing

You must create a repetitive manufacturing profile which allows the creation of actual activities.

Work centers

You must create a work center for the production line.
Here, in the Basic data tab, you must enter a standard value key which determines the composition of the various standard values, for example, for the setup time, the machine time or the teardown time.
In the Cost centers tab, you must enter the cost center and assign the standard values to the CO activity.

Routing

You must assign a control key that allows backflushing and cost estimation to each operation in the routing. To do this, select Cost estimate in the control key and enter an indicator which allows backflushing in the Backflush field.

Material master

In the MRP data for the material, you must enter the repetitive manufacturing profile you defined above.
In the MRP data for the material, you must also create a production version containing the work center and the routing.

You must create a product cost collector.

You are recommended to work with valuated sales order stock in make-to-order production. In this case, the costs are collected at a product cost collector as in make-to-stock production.

In make-to-order production with non-valuated sales order stock, you do not collect the costs at a product cost collector but at a sales order item that carries costs and revenues. This process, however, is not recommended by SAP.

In the repetitive manufacturing profile, depending on your settings, you must create a standard cost estimate for the material or a preliminary cost estimate for the production version.

Features

The system updates the actual costs at the product cost collector. Depending on the settings in the repetitive manufacturing profile, the system calculates the activity quantities on the basis of the preliminary cost estimate for the product cost collector or on the basis of the standard cost estimate for the material. You can adjust the proposed quantities to the actual activities quantities if the planned quantities differ from the actual quantities (for example, due to an unforeseen event or you may have based your planning on inaccurate estimates). The valuation of the activity quantities is carried out on the basis of the valuation variant of the current cost estimate. You save this valuation variant in Customizing Cost Object Controlling ® Periodic Product Controlling as a default value in the order type of the product cost collector.

Valuation in Reporting Point Backflush

Recommendation for Repetitive Manufacturers