Backorders for Contract Deliverables

When a contract deliverable is partially delivered, LN creates a backorder for the contract deliverable line. When this order is delivered partially, a backorder for the remaining goods is created.

For example, during the delivery of the goods, if the goods are damaged in the warehouse or if the truck carrying the goods has insufficient capacity, the damaged or the remaining goods cannot be delivered and the order remains incomplete.

The backorder quantity is calculated based on the formula:

Backorder Quantity = Ordered Quantity - Delivered Quantity

Parameter setting for backorders

Use the Contract Parameters (tpctm0100m000) session to set the parameters for the backorders. If the Activate Backorders automatically checkbox is selected, LN sets the status of the backorder to Active. If the Release Backorders automatically to Warehousing checkbox is selected, LN releases the backorders with Active status to the warehouse.

Creating a backorder

For a contract deliverable that has the status Delivered, if the delivered quantity is less than the ordered quantity, LN creates a backorder line for the undelivered goods in the Contract Deliverables (tppdm7100m100) session. LN selects the Backorder Present checkbox indicating that a backorder is created for the deliverable line. LN also creates a deliverable schedule line for the backorder, if the Backorder checkbox is selected in the Contract Deliverables Schedule (tppdm7100m200) session.

Backorders can be created for hardware and non-hardware deliverables. The backorder data can be viewed in the Backorders (tppdm7100m300), Contract Deliverables Monitor (tppdm7100m400), Contract Deliverables (tppdm7100m100) and the Contract Deliverables Schedule (tppdm7100m200) sessions.

For the contract deliverables of the type Hardware, the backorder deliverables are released to warehousing; only if the status of the backorder line is Active and the Release Backorders automatically to Warehousing checkbox in the Contract Parameters (tpctm0100m000) session is selected. LN updates the status of the backorder line to Released to Warehousing. The status of the backorders can be manually changed to Released to Warehousing, as required.

LN allows you to create multiple backorder lines for a single deliverable. You can also delete or cancel a backorder line.

Note: For a contract deliverable line linked to a deliverable schedule line, the Backorder Quantity displays the total backorder quantity of all the backorders linked to the schedule. When the quantity on a backorder schedule is modified, LN updates the backorder quantity in the Contract Deliverables(tppdm7100m100) session and the Contract Deliverables Schedule (tppdm7100m200) session.

The backorder data can be printed only as a part of the contract acknowledgment if the Contract Deliverables check box and the Include Backorder Lines check box is selected in the Print Contract Acknowledgments (tpctm1400m000) session.