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What is Bill of material's Flushing principle used in ERP systems?
Wiki User
∙ 14y ago
The "Flushing Principle" in a Bill of Materials, is used set the point at which a bill of material component is automatically consumed during production in order to both;
> Establish the point at which a raw material is removed from available inventory (this is meant to prevent a raw material already assigned to an existing production order from appearing to be available to someone planning future production orders).
> Establish the point at which a raw material's cost is recorded to the appropriate general ledger account(s).
Generally, this information is manually entered or selected from a list of options within the setup of Enterprise Resource Planning (ERP) or production software.
A common methodology would be to indicate to the software system the stage of the production process in which the raw material is to be consumed.
For example, a bill of material component might be consumed in the following ways:
1) Pre-flushed: consumed at the start of the production cycle
2) Back-Flushed: consumed at the end of the production cycle
3) Manually: consumed when manually entering the information any time within the production cycle.
Wiki User
∙ 14y ago
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