How to Sync an NCR From Your QMS to ERP Quarantine and MRB Disposition
how to sync NCR from QMS to ERP inventory quarantine
Also searched as
- NCR disposition not updating ERP inventory
- QMS nonconformance report integration with ERP
- MRB disposition scrap rework use as is ERP transaction
- block nonconforming lot in ERP when NCR opened
Short answer
The reliable pattern is two events: when the NCR opens, the ERP moves or flags the affected lot or serial into a non-nettable quarantine status; when the Material Review Board closes it, the disposition (use as is, rework, repair, scrap, return to vendor) triggers exactly one matching ERP transaction. The NCR number is the key that ties both sides together.
Applies to: Any QMS (eQMS, SAP QM, Oracle Quality, Plex, ProShop, spreadsheet-based) paired with any manufacturing ERP that has lot or serial control and a hold or quarantine status; AS9100 and ISO 9001 8.7 control of nonconforming outputs
Wiring NCR open and close to the ERP
- 1Agree on the identifier: the NCR number must be carried on every ERP transaction it causes (in a reference, reason or comment field) and the ERP lot, serial, job and PO numbers must be mandatory fields on the NCR.
- 2Define one quarantine mechanism in the ERP: a non-nettable location or warehouse, or a lot status such as On Hold, so MRP and pick logic cannot allocate the stock.
- 3On NCR open, post the move to quarantine automatically or create a task for stores; never rely on a person remembering to block the lot.
- 4Define the five dispositions as a closed list in the QMS (use as is, rework, repair, scrap, return to vendor) and map each to one ERP transaction type.
- 5On MRB close, post the matching ERP transaction: scrap adjustment with reason code, move to rework operation or rework job, vendor return, or release back to stock.
- 6Write the ERP document number back to the NCR so the audit trail shows the quantity and cost actually moved.
- 7Block NCR closure in the QMS until the ERP transaction is confirmed posted, and alert on NCRs open longer than your target age with stock still in quarantine.
- 8Reconcile weekly: quarantine inventory in the ERP should equal the open NCR quantities in the QMS, and any difference is a defect in the integration.
Why this integration breaks in practice
Most plants run the NCR in one system and the stock in another, joined by a person who types the lot number twice. The failure modes are predictable: the NCR is opened but the lot is never blocked and MRP allocates it to a customer order; the MRB scraps the part on paper but nobody posts the adjustment, so the ERP still counts it as good stock and the next cycle count finds a variance; or the disposition is rework and the rework job is created without a link back to the NCR.
Under AS9100 clause 8.7 and ISO 9001 clause 8.7 you must identify and control nonconforming outputs and keep documented information on the disposition. An auditor will pick an NCR and ask to see the physical segregation, the disposition authority and the inventory record. If the ERP and QMS disagree, that is a finding even when the product is fine.
Mapping dispositions to ERP transactions
Use as is (with customer concurrence where the contract requires it) releases the lot from quarantine and records the concession reference. Rework sends the stock to a rework operation, either an added operation on the existing job or a separate rework order, and the labor and material of the rework should be charged with the NCR as the cause. Repair is the same with an approved repair procedure attached. Scrap is an inventory adjustment or scrap transaction with a reason code that finance maps to a scrap variance account.
Return to vendor is the one that most often loses money. It needs a vendor return or RMA document against the original PO receipt so the payable can be debited, not just an inventory adjustment. Without the link to the receipt, you eat the cost and the supplier scorecard never sees the reject. Keep the NCR as the source for the supplier quality record described in the related SCAR page.
Disposition ERP action Cost/ledger effect Use as is Release hold, note concession none Rework / Repair Rework op or order, link NCR rework labor, material Scrap Scrap adjustment, reason code scrap variance Return to vendor Vendor return against PO receipt AP debit / credit memo
Doing it in SAP, and in ERPs without a QM module
In SAP, the QMS side is often SAP QM itself: a quality notification (QM01 create, QM02 change, QM03 display) with notification types for customer complaint, vendor complaint and internal problem. Stock placement uses movement types such as 344 to move unrestricted stock to blocked and 343 to release it, posted through MIGO, and the usage decision on an inspection lot is made in QA11. The integration problem there is mostly process discipline, not interfaces.
In SyteLine, NetSuite, Epicor, Infor LN or M3 paired with a standalone QMS, the practical approach is an integration layer or middleware job that reads new NCRs through the QMS API or a database view and calls the ERP's documented transaction interface (an inventory transfer to a quarantine location, a scrap adjustment, a vendor return). Use the supported APIs, not direct table writes, so costing and audit logs fire correctly.
Edge cases to design for
Partial quantities: an NCR for 12 pieces out of a lot of 200 should move 12, not the lot. The ERP must support splitting a lot or moving a quantity within a lot, otherwise you quarantine good stock and starve the line. Serial-controlled parts are simpler because each serial carries its own status.
Already consumed material: by the time the NCR is raised, some of the lot may be in WIP or shipped. The NCR should list affected jobs and shipments using the ERP genealogy, and the disposition must include containment for the portion you can no longer reach. This is where lot traceability in the ERP pays off, covered in the CAPA lot linkage page.
Common pitfalls
- !Quarantine by a free-text comment instead of a real non-nettable status, so MRP and picking ignore it.
- !Posting scrap as a plain quantity adjustment with no reason code, so finance cannot separate scrap from count errors.
- !Closing the NCR in the QMS before the ERP transaction posts, leaving an auditor-visible mismatch.
- !Treating return to vendor as a stock adjustment instead of a vendor return against the PO receipt.
- !Letting the NCR reference only a part number, with no lot, serial or job, which makes containment guesswork.
- !Writing directly to ERP tables to avoid API work, which bypasses costing, audit trail and upgrade safety.
How an ERP-grounded AI assistant handles this
An AI assistant grounded in the ERP can run the weekly reconciliation without a spreadsheet: list every lot in quarantine status, match each to an open NCR number, and flag orphans in either direction with the underlying query shown. It can also draft the affected-jobs and shipments list for containment from lot genealogy. Any write, such as posting a scrap adjustment, stays behind a human approval step, and ERPray is read-only by default.
Frequently asked questions
Should the QMS or the ERP own the NCR?
Own it where the quality team already works, usually the QMS, and let the ERP own the stock and cost effects. The NCR number is the shared key. Problems start when both systems keep their own NCR record and the two drift apart, so pick one system of record and push references to the other.
Do I need real-time integration?
Quarantine on open should be near real time, because the risk is MRP or a picker using suspect stock in the next hours. Disposition postings can run in a short batch, every few minutes to hourly, as long as closure is blocked until the ERP confirms posting.
What if my ERP has no quarantine status?
Create a dedicated non-nettable warehouse or location called something like MRB and move stock into it with a standard transfer. It is a blunt instrument but works in almost every ERP, and a report of the MRB location contents gives you the reconciliation list for free.
How do I handle customer-supplied material?
Customer-owned stock should sit in a separate ownership or consignment location, and its NCR follows the same quarantine flow but with disposition authority and notification to the customer. Scrap and rework of customer property must not hit your own inventory value.
Related
How to Link a CAPA to ERP Lots and Serial Numbers for Containment and Effectiveness
A CAPA is only as good as its containment scope, and the scope comes from ERP genealogy: forward trace from the suspect raw material lot or process to every job, serial and shipment that consumed it, and backward trace from the failed serial to its components. Store the CAPA number against those ERP records, then use ERP rejection and return data to verify effectiveness.
How-toHow to Issue a Supplier Corrective Action Request (SCAR) Using ERP Receiving and Reject Data
Supplier quality starts with three ERP datasets: PO receipts (what arrived and when), receiving inspection results (what failed and why), and NCRs or vendor returns (what it cost). Join them by supplier and part to compute reject rate and on-time delivery, set thresholds that trigger a SCAR, and attach the evidence lots to the request so the supplier can investigate.
How-toHow to Populate AS9102 First Article Inspection Forms From ERP Data
Roughly half of an AS9102 package is data your ERP already holds: part number, revision, drawing, serial or lot, PO, raw material and special process records on Forms 1 and 2. Form 3 characteristics come from the ballooned drawing and the inspection results, not the ERP. The ERP's best contribution is deciding when an FAI is required and keeping the evidence linked.
How-toHow to Send Production and Labor Reporting from MES to ERP
Treat the ERP work order as the system of record for cost and quantity, and the MES as the system of record for what physically happened. Send one confirmation message per operation (or per shift or lot) containing work order, operation sequence, good quantity, scrap quantity with reason, and labor start/stop per employee and work center, post it through the ERP's supported transaction API, and make the message idempotent so a retry never double-posts.
How-toHow to Calculate OEE from MES Data and ERP Standards
OEE equals Availability times Performance times Quality. Availability comes from MES run and stop events against planned production time, Performance compares actual output to the ideal cycle time (usually the routing standard from the ERP), and Quality is good units divided by total units. The numbers are only trustworthy if planned time, ideal cycle time and the good/scrap split are defined once and used consistently.
AdvancedISA-95 and B2MML: How to Integrate ERP with MES
ISA-95 defines the boundary between business systems (Level 4, the ERP) and manufacturing operations (Level 3, the MES) and the information that crosses it. B2MML is the XML implementation of those models. In practice you exchange a ProductionSchedule from ERP to MES, and ProductionPerformance, plus material and equipment information, back, mapping each element to your ERP's work order and confirmation APIs.
AI for ERPAI for NCR, CAPA, and 8D Drafting in AS9100 and ISO 9001 Quality Systems
AI drafts NCR, CAPA, and 8D reports from ERP quality data for engineer review, cutting drafting time under AS9100 and ISO 9001 without changing sign-off.
AI for ERPAI for SAP Quality Management: Notifications, 8D, and CAPA Without the Manual Drafting
AI grounded on SAP QM data that triages notifications, drafts 8D and CAPA reports, and summarizes inspection trends, deployed on-prem for full traceability.
AI for ERPAI for AS9100 Quality Management on Your ERP
AI on top of your ERP quality module for AS9100D suppliers: NCR/CAPA drafting, FAI support, counterfeit parts screening, with a full audit trail.
Stuck on QMS to ERP integration?
Talk to engineers who work inside QMS to ERP integration every week, and who build private AI that answers these questions from your own ERP data.