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Outsource Costs Doubled Due to Backflushing

Posted on by 5

I am seeing an issue repeatedly with the costs of our Manufacturing Orders, but I am having trouble duplicating it intentionally.  The issue is that upon completing the Manufacturing Order (using MO Receipt Entry), our Outsource costs are doubling.

When we set up a Manufacturing Order for an item that requires Outsourced Routing, we insert the cost per unit for the outsourced service in the Labor Time field.  This cost per unit matches the cost per unit in the PO for the service, which we create using the MOP/POP link.

Looking at the Manufacturing Order Variance as I progress towards completion of the order, I can see that the cost from the Labor Time field gets applied to "Production Costs", and once the PO is received, that cost gets applied to "Costs Put Into WIP".  It is the "Costs Put Into WIP" value that doubles when the Manufacturing Order Receipt is completed.  I can tell if this Outsource cost doubling will occur before completing the MO Receipt by looking at the Labor/Machine Cost Entry screen.  When the doubling occurs upon completion of the MO receipt, it appears to be because in addition to the Outsourced Costs Collected and Collected Costs Available, there is an additional value of the same amount in Outsourced Costs to Backflush. 

This Costs to Backflush dollar amount is what is so confusing.  I have not been able to determine a repeatable scenario that causes a Cost to Backflush to appear using our standard practice when setting up Manufacturing Orders, but we still keep having it somehow show up there, and consequently doubling our outsource costs.

I cannot find anywhere that we have marked such costs to be backflushed, and in fact the option to Auto-Backflush Labor costs is not selectable as an option in the Outsourced Routing Sequence.

Does anyone have any insight that may shed some light on a solution to this mysterious problem?  We basically had to stop using Manufacturing Orders because it became such a problem, but we need to be able to do so and have the costs flow accurately and reliably.  This doubling does not seem to occur every time, which is part of what makes it such a maddening issue to nail down, but it happens frequently enough to be highly disruptive.

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  • gdemarco Profile Picture
    gdemarco 5 on at
    RE: Outsource Costs Doubled Due to Backflushing
    [quote user="gdemarco"]in fact the option to Auto-Backflush Labor costs is not selectable as an option in the Outsourced Routing Sequence.[/quote]

    I just discovered that this is only partly true.  It seems that once the Routing Sequence is saved, this option becomes selectable.  However, I also discovered that if this option is selected, the check mark disappears once the Routing Sequence is saved again, but the option seems to be permanently selected at that point.  There does not seem to be any way to confirm whether this option has been previously selected, nor does there seem to be any way to undo the Auto-Backflush Labor option once it has been selected.  Any thoughts or insight on this would be extremely helpful, as I think this could potentially be the root of our issue.

  • gdemarco Profile Picture
    gdemarco 5 on at
    RE: Outsource Costs Doubled Due to Backflushing

    An additional bit of information that I just discovered:  If I go to Manufacturing Order Activity for one of the problematic Manufacturing Orders, open the Manufacturing Order Summary Sequence Detail for the Outsourcing, then view the Sequence in Manufacturing Order Closeup, it shows that Auto-Backflush Labor IS selected.  How is this possible when that option is not selected nor selectable from the MO Routing Edit window?

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