Backorders - manual confirmation

If the Confirm Back Orders Automatically check box is cleared in the Purchase Order Parameters (tdpur0100m400) session, you must manually confirm potential backorders.

Potential backorders

Potential backorders are displayed in the Potential Purchase Back Orders (tdpur4101m700) session. In this session, you can retrieve all required information for internal investigation and external negotiation. LN displays all purchase orders whose backorder quantity is greater than zero and whose backorder is not confirmed yet. You can modify the potential backorder details, such as the backorder quantity and the backorder's delivery date, and must confirm the potential backorder in this session.

Note

After confirmation, the backorder is moved to the Confirmed Purchase Back Orders (tdpur4101m800) session.

Received quantity is less than ordered quantity

When enter a purchase order and release it to Warehousing, its status is In Process. After the purchase order is released to Warehousing, receipts are carried out in the Warehouse Receipt (whinh3512m000) session. On the Lines tab of this session, you must enter the quantity of goods received in the Received Quantity in Receipt Unit field. If the expected quantity is less than the received quantity and the receipt is final and confirmed, LN generates a potential backorder in the Potential Purchase Back Orders (tdpur4101m700) session.

After you confirm the potential backorder, LN generates a new purchase order line (with the same position number as the original line, but with another sequence number) for which the Order Line Type is Back Order. When the backorder is approved, the purchase (back)order line is automatically released to Warehousing. The original purchase order's status still is In Process. After the receipt is performed, the normal procedure for the purchase order type applies.

Received quantity is (partially) rejected

If inspection is required on the goods, first receipts are carried out in the Warehouse Receipt (whinh3512m000) session and then the goods must be inspected in the Warehouse Inspections (whinh3122m000) session. If the goods are rejected during inspection and the Payable to Supplier check box is cleared in the Inventory Handling Parameters (whinh0100m000) session, a backorder is created for the rejected items.

Note

If the Payable to Supplier check box is selected in the Inventory Handling Parameters (whinh0100m000) session, you must pay for the items after receipt, even if they must still be inspected. If, in Warehousing, these items are rejected during inspection and returned to the supplier by means of a Return Rejects purchase order, the supplier must be invoiced for the returned rejected goods. Because Warehousing does not communicate rejections for disposition items to the purchase order line, no backorder is created.

Backorder lines that are the result of rejection during inspection cannot be automatically confirmed and always result into a potential backorder. The reason for this is that a user must have the time to decide how to handle the rejected inventory that is stored in the reject location of the warehouse, which can also be accepted again.

Rejected quantity that is present at the reject location, can be:

  • Returned
  • Destroyed
  • Accepted again

Potential backorders can be manually confirmed in the Potential Purchase Back Orders (tdpur4101m700) session. Confirmation can occur before or after you decided how to handle the rejected inventory at the reject location. However, if (part of) the rejected goods are accepted again, you can first adapt the To be Confirmed Backorder Quantity and then confirm the potential backorder.

The following applies to the original purchase order line (detail):

  • The original purchase order line (detail) can only be processed in the Process Purchase Orders (tdpur4223m000) session if the total received quantity is inspected and rejected goods are no longer present at the reject location.
  • The invoicing status, which is displayed in the Invoicing Status field of the Purchase Order Lines Monitor (tdpur4501m500) session, can only be set to All Approved if rejected goods are no longer present at the reject location. If rejected goods are still present, the goods can be accepted again, after which they must be invoiced.
Planned inventory transactions for backorders

When a backorder is generated, LN creates a planned inventory transaction in the Planned Inventory Transactions (whinp1500m000) and Order - Planned Inventory Transactions (whinp1501m000) sessions. The Planned Quantity field in these sessions is equal to the quantity that is expected to be received on the backorder, even if the backorder is not confirmed yet. If you change the backorder quantity in the Potential Purchase Back Orders (tdpur4101m700) session and confirm the potential backorder, the changed quantity is recorded as the planned quantity.

Example

Order quantity = 10

Received quantityRejected quantityBackorder confirmedBackorder quantityPlanned inventory transaction
70No-3
70Yes33
72No-5
72Yes55
72Yes33

 

For the example's last line, the backorder quantity is changed manually in the Potential Purchase Back Orders (tdpur4101m700) session.