Backorder handling for sales orders

If a final delivery is made for a sales order (delivery) line and only a part of the goods or none of the goods are shipped, a backorder is created.

A backorder can be created in Sales or in Warehousing.

Sales

In Sales, a backorder can be created as follows:

  • You manually enter a hold back quantity.
  • The direct delivery purchase order that is created for the sales order is not completely delivered.
Hold back quantity

In the Sales Order Lines (tdsls4101m000) and Delivery Lines (tdsls4101m100) sessions, you can manually hold back a part of the ordered quantity. Holding back a part of the ordered quantity always results into a backorder.

A hold back quantity allows you to identify up front what the expected backorder will be. In this way, you can assign limited stock to several business partners instead of to only one business partner. When you release a sales order line to Warehousing, the Ordered Quantity minus the Hold Back Quantity is released.

After a sales order line is released to Warehousing for which you specified a hold back quantity in the Sales Order Lines (tdsls4101m000) or Delivery Lines (tdsls4101m100) session:

  1. A backorder is generated in the Maintain and Confirm Back Orders (tdsls4125m000) session when a final delivery is executed for the sales order (delivery) line. The Hold Back Quantity is not filled yet in the Maintain and Confirm Back Orders (tdsls4125m000) session.
  2. The BackOrder Quantity field is updated with the remaining quantity in the Maintain and Confirm Back Orders (tdsls4125m000) and the Sales Order Lines (tdsls4101m000), or Delivery Lines (tdsls4101m100) session. The remaining backorder quantity is calculated as follows: Ordered Quantity- Delivered Quantity.
  3. You must confirm the backorder (sequence) line manually in the Maintain and Confirm Back Orders (tdsls4125m000) session, or the backorder is automatically confirmed if the Confirm BackOrders Automatically check box is selected in the Sales Order Parameters (tdsls0100s400) session.

  4. After the backorder is confirmed:

    • A new (delivery) line is generated with a new sequence number and the Backorder check box selected in the Sales Order Lines (tdsls4101m000) or Delivery Lines (tdsls4101m100) session. These lines can be processed as regular sales order lines and are also displayed in the Maintain and Confirm Back Orders (tdsls4125m000) session.
    • The Hold Back Quantity of the parent sales order line is deleted in the Sales Order Lines (tdsls4101m000) or in the Delivery Lines (tdsls4101m100) session.
  5. If, required, you can specify a Hold Back Quantity for the newly created backorder line. Consequently, the previous steps are repeated when you release a sales order (delivery) line to Warehousing.

You cannot specify a Hold Back Quantity for:

  • Items with a commitment policy
  • Order (lines) with shipping constraints
  • Cost items
  • Service items
  • List items
  • Subcontracted items
  • Equipment items
  • Generic items
  • Collect orders
  • Return order lines
  • Total order lines, which have linked delivery lines
  • Order lines with an order quantity of zero
Note
  • If you select the Confirm Backorders Automatically check box in the Sales Order Parameters (tdsls0100s400) session, the backorder is automatically confirmed.
  • If you select the Release Backorders Automatically to Warehousing check box in the Sales Order Parameters (tdsls0100s400) session, the confirmed backorder is automatically released to Warehousing.
Direct delivery orders

If a direct delivery purchase order is generated for a sales order, you can report deliveries back from Procurement to Sales with the Update Sales/Service Order with Delivery Information (tdpur4222m000) session.

If less is received than ordered, the following are applicable:

  1. The Backorder Quantity field is filled in the Maintain and Confirm Back Orders (tdsls4125m000) session and the Sales Order Lines (tdsls4101m000) session or Delivery Lines (tdsls4101m100) session. The backorder quantity is calculated as follows: Ordered Quantity- Delivered Quantity.
  2. You must manually confirm the backorder (sequence) line in the Maintain and Confirm Back Orders (tdsls4125m000) session, or the backorder is automatically confirmed if the Confirm BackOrders Automatically check box is selected in the Sales Order Parameters (tdsls0100s400) session. Consequently, a new line is generated with a new sequence number and the Backorder check box selected in the Sales Order Lines (tdsls4101m000) or Delivery Lines (tdsls4101m100) session. This line is also displayed in the Maintain and Confirm Back Orders (tdsls4125m000) session with the same position number and another sequence number.
  3. A confirmed backorder is automatically generated in Procurement, which is linked to the backorder in Sales. You can view the backorder in the Purchase Order Line Details (tdpur4101m200) and the Confirmed Purchase Back Orders (tdpur4101m800) sessions.
Warehousing

A backorder can be created by Warehousing, if, for example, the goods are damaged in the warehouse or the truck that must pick up the goods has insufficient loading capacity.

In such cases, the quantity of the shipment created from the sales order must be decreased. The quantity can be decreased before confirmation of the outbound advice and before confirmation of the shipment.

When the modified shipment receives the Confirmed status:

  1. A backorder is generated and displayed in the Maintain and Confirm Back Orders (tdsls4125m000) session with the Back Order Quantity field filled.
  2. You must manually confirm the backorder (sequence) line in the Maintain and Confirm Back Orders (tdsls4125m000) session, or the backorder is automatically confirmed if the Confirm BackOrders Automatically check box is selected in the Sales Order Parameters (tdsls0100s400) session.
  3. After confirmation, a new (delivery) line is generated with a new sequence number and the Back Order Quantity check box selected in the Sales Order Lines (tdsls4101m000) or Delivery Lines (tdsls4101m100) session. The line can be processed as a regular sales order line and is also displayed in the Maintain and Confirm Back Orders (tdsls4125m000) session.

Deliveries are displayed in the Sales Order Lines - Monitor (tdsls4510m000) and Sales Order Actual Delivery Lines / Sales Order Invoice Line (tdsls4106m000) sessions.

Warehousing cannot create backorders for:

  • Order (lines) with shipping constraints
  • Collect orders
  • Return order lines
  • Order lines with linked delivery lines
  • Order lines with an order quantity of zero
Example
OrderPositionSequenceOrderedDeliveredBackorder
102100251510
1021011073
102102330

 

The backorder quantity of the parent line always determines the ordered quantity of the next line.

Note

For a processed sales order line, you cannot maintain or delete linked backorder lines if these lines are unconfirmed. Therefore, before processing a sales order line, make sure no unconfirmed backorder lines are available.

After confirmation, the backorder can be deleted as follows:

  1. Cancel the line on the Back Orders tab of the Sales Order - Lines (tdsls4100m900) session or in the Maintain and Confirm Back Orders (tdsls4125m000) session.
  2. Delete the canceled backorder line in the Sales Order Line - Planned Deliveries (tdsls4101m900) or from the Sales Order - Lines (tdsls4100m900) session.

If a sales order contains component lines, backorders are created for component lines instead of for order lines. For more information, refer to Component handling - component lines.

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