Backorders for Contract Deliverables

When a contract deliverable is partially delivered, a backorder is created 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

Prerequisites for creating backorders

You can define the parameters for the backorders in the Contract Parameters (tpctm0100m000) session. If the Activate Backorders automatically checkbox is selected, the application sets the status of the backorder to Active. If the Release Backorders automatically to Warehousing checkbox is selected, the application releases the backorders with Active status to the warehouse.