Backorders when a Picking List is Reported from an External System

It can be challenging to define how to manage backorders when a picking list is reported from an external system or partner.

In the API transactions to report a pick line, three parameters are important when managing backorders:

• The delivered quantity (DLQT) is always the picked quantity.
• The allocated quantity (ALQT) indicates the part of the physical stock that is marked to be used for withdrawal to the pick line.
• The 'Flagged as completed' parameter (OEND) indicates whether the remaining quantity will be backordered.

What should happen to a delivery line after it is reported when a shortage has occurred?

The main rule is that the M3 core logic should decide whenever the pick shortage should be backordered or not. Then the 'Flagged as completed' parameter should always be set to zero and a deviation acceptance limit is defined in the program 'Item. Connect Order Line Completion Limit' (MMS425). However, if backorders are not used, the parameter should be set to 1.

To manage partial reporting of a pick line, a good rule is to always set both the allocated and delivered quantity as the picked quantity.

See the example in the following figure to understand the different outcomes of a reporting transaction.

A pick line of ten pieces is downloaded to an external system. If partial reporting of four pieces is done, both the allocated and delivered quantity should be set to four. The result is a partial reported line in status 46 with six pieces left on the picking list.

If the allocated quantity is set to ten and the 'Flagged as completed' parameter is zero, M3 will decide if the pick line should be closed or backordered. If no acceptance limit is set, the line will be backordered.