Lesson 3 of 6
Goods issue: manual and backflush
9 min
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Components leave stock and enter the order through a goods issue. In inventory terms this is movement type 261 (goods issue for order); its reversal is 262. Each goods issue creates a material document and a journal entry, and it reduces the component's stock quantity and value.
- ReservationCreated with the order: components, quantities, requirement dates, storage location
- StagingWarehouse picks rotors, stators and housings for order operations; a pick list can print at release
- Goods issue (261)MIGO with reference to the order or reservation, or posted automatically by backflush
- Material documentRecords the movement: material, quantity, plant 1710, storage location 171L, order number
- Journal entryInventory account credited; consumption account debited with the order as cost object
- Order actual costsComponent costs now show as actuals on the order next to planned costs
Manual goods issue
For a manual issue, the warehouse clerk uses MIGO (Goods Issue, reference Order) or a Fiori goods movement app, enters the production order number, and the system proposes the open components. The clerk adjusts quantities to what was actually picked and posts. Manual issue suits expensive or batch-managed components where someone must choose the batch and count what leaves the shelf.
Backflush
Backflushing posts the goods issue automatically when the operation that consumes the component is confirmed. The quantity is derived from the confirmed yield (and scrap) and the BOM quantity. It saves data entry for cheap, high-volume parts such as fasteners and bearings.
| Where the backflush indicator is set | Effect |
|---|---|
| Material master (MRP view) | Always backflush, never backflush, or let the work center decide |
| Work center | Used only when the material master leaves the decision to the work center |
| Routing component assignment | Applies regardless of the other two settings |
| Production order | Copied from the above; can be changed on the order |
Where backflushing is controlled. The indicator is copied into the order when it is created.
| Manual issue (MIGO, 261) | Backflush at confirmation | |
|---|---|---|
| Who posts | Warehouse clerk | The system, triggered by the operator's confirmation |
| Quantity | What was actually picked | Derived from confirmed yield and scrap and the BOM quantity |
| Timing | When stock leaves the shelf | When the consuming operation is confirmed |
| Best for | Expensive, batch-managed or serialized parts | Cheap, high-volume parts such as bearings and fasteners |
| Main risk | Forgotten or wrong issues | Silent failures parked in COGI |
Each order keeps a record of what it has consumed. The order's goods movement list and the component overview show requirement quantity, withdrawn quantity and the difference. Comparing withdrawn with required is the quickest check for over- or under-issue, and the difference becomes a quantity variance when finance settles the order.
Over-issuing is common when a clerk issues a full box instead of the exact quantity. Some companies allow it and return the remainder later with movement type 262 or a separate return. Others block over-issue with tolerance settings. Either way, a test should prove the rule your business chose.
What would you do?
Ana from accounts payable notices that rotor stock value in the balance sheet looks too high compared with the warehouse count. Production confirms by backflush. What should the team check first?
Walkthrough: clearing a failed backflush
- Open
COGI(or the Fiori app for reprocessing failed goods movements in your release) for plant 1710 and filter on the order. - Read the error: "deficit of 12 pc CMC-STA-300 in 171L". The confirmation is saved; the goods issue is not.
- Fix the cause, not the record: post the missing stator transfer from the main store to 171L (movement 311).
- Reprocess the record. A 261 material document is created with the order as account assignment.
- Check COGI is empty for the order and the component overview shows withdrawn equal to required.
- Goods issue to an order is movement type 261; reversal is 262.
- Each issue creates a material document and a journal entry and shows as actual cost on the order.
- Backflush posts consumption automatically at confirmation; failed postings land in COGI.
- Compare withdrawn with required quantities to spot over- and under-issue.
Check your understanding · not graded
Lesson check
1. Which movement type issues a component to a production order?
2. When does a backflushed component get issued?
3. Where are failed backflush movements reprocessed?
4. A COGI record shows a stator deficit in 171L. What should happen before reprocessing?