Backorders - automatic confirmation

If the Confirm Back Orders automatically check box is selected in the Purchase Order Parameters (tdpur0100m400) session, LN automatically confirms backorders.

Received quantity is less than ordered

A distinction is made for items that are received for:

  • Regular purchase orders
  • Direct delivery purchase orders
Note

For regular purchase orders, the Combine Open Backorders check box in the Purchase Order Types (tdpur0194m000) session determines whether several backorder lines are consolidated into one open backorder line for a purchase order line detail.

Regular purchase orders

When you 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 more than the received quantity and the receipt is final and confirmed, LN generates a backorder and automatically confirms the backorder.

When the backorder is confirmed, 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 Backorder. When this backorder is confirmed, the purchase backorder line is automatically released to Warehousing. The original purchase order status still is In Process. After the receipt is carried out, the normal procedure for the purchase order type applies.

Direct delivery purchase orders

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

If less is received than ordered:

  1. A backorder is generated automatically in Sales or from Service. If a backorder is generated in Sales, you must first confirm the backorder (sequence) line manually in the Maintain and Confirm Backorders (tdsls4125m000) session, or LN automatically confirms the backorder if the Confirm Back Orders automatically check box is selected in the Sales Order Parameters (tdsls0100s400) session.
  2. A confirmed backorder is generated automatically in Procurement, irrespective of the setting of the Confirm Back Orders automatically check box in the Purchase Order Parameters (tdpur0100m400) session. If the direct delivery applies to a sales order, the backorder is linked to the backorder in Sales.
  3. After a (direct delivery) backorder is generated in Procurement, 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 Overview (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. For more information, refer to Backorders - manual confirmation.

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 value of the Planned Quantity field in these sessions is equal to the quantity that is expected to be received on the backorder.