Backflushing records component usage after production completion, rather than issuing each component transaction separately before or during production. When the assembly work order is completed, the system deducts the required components from inventory based on the bill of material and production quantity.
Exact extract: “The method of backflushing records inventory usage without requiring maintenance of all the issue transactions. In this method all the component parts of the assembly or subassembly are deducted by exploding the bill of materials by the production count for the assembly.”
Therefore, because the component inventory records are decreased when the assembly work order is completed, this is backflushing inventory .
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