Manufacturing · Daily operations · 7 min read

Issue and return materials

Move components from the warehouse to production, return what is not used, and see how issue methods and tolerance work.

Before you begin

• The order is Released, In Progress or Completed. Issue is refused on a draft order.
• You hold manufacturing.material.issue.
• Components are in stock in the order's warehouse. Lot-tracked components need a lot chosen.

Steps

Issue

1. Open the order and click Quick Actions > Material Issue.
2. The dialog lists stocked components with the quantity still to issue. Change the Qty per component if needed. Lines with 0 are skipped.
3. For a lot- or serial-tracked component choose the Lot. Lots are listed with free quantity, earliest expiry first.
4. Click Issue.

Return

1. On the Materials tab open the row menu of the component and choose Return.
2. Enter the Qty to return. It cannot exceed issued minus returned.
3. Click Return.

Check availability and use a substitute

1. In the Materials row menu choose Availability to see on hand, reserved, available, incoming and expected receipts.
2. If an approved substitute exists, click Use beside it. The still-to-issue quantity moves to a new line "Substitute for ..." multiplied by the conversion ratio.

What happens next

• An issue (MI- number) creates an Inventory internal transfer from the warehouse stock to the production location <warehouse>/PROD. On-hand quantity falls, and the reservation is consumed first.
• The value of the issued components goes into WIP. A return moves goods back at the rate they were issued.
• A released order becomes In Progress with the first issue.
• With cost posting on, a journal debits WIP and credits the component's stock account.
• Production > Material Issues lists every issue, return and backflush.

Worked example: issuing 10 table tops at AED 120.00 and 40 legs at AED 15.00 puts 1,200.00 + 600.00 = AED 1,800.00 into WIP. Returning 5 legs takes AED 75.00 back out.

Issue methods

Good to know

• Over-issue. You may issue up to the quantity required plus the Over-issue tolerance %. Beyond it: 'LG-01: 45 is more than the 40 still needed. Record it as extra use, or change the order.' With a 5 % tolerance, 42 of 40 is allowed and 43 is not.
• Returns beyond issue: 'Only 40 of LG-01 is on the order to return.'
• No quantities entered: 'Enter the quantities to issue.'
• Tracked components: 'TT-01 is tracked by lot - choose the lot it comes from.' A backflush component cannot be lot-tracked: '<code> is lot-tracked: backflush cannot choose a lot for it. Issue it by lot, or set it to manual.'
• Backflush shortage. If stock is too low and Backflush all or nothing is on, registering production is refused: 'Backflush is short - nothing was posted.' Switch the setting off to take what exists.
• A substitute that is marked Approval required can be used only by someone with manufacturing.bom.approve.
• Non-stock lines are not listed.