Automatic Closing and Rejected Orders

Abstract

Automatically prevent backorders and accept orders that otherwise would have been rejected. This is done by closing the order line, fully or partially, and attaching a reason code. The solution has two parts:

Automatic closing (Backorder prevention)
Rejected orders

Although these parts are closely related, they are still not the same.

The automatic closing (backorder prevention) functionality will check the ATP and partially or fully close the order line (status 29 or 99) if there is a shortage. If you use a supply model, the automatic closing functionality is triggered only if the total supply model quantity is not enough.

The rejected orders functionality will accept some of the errors that can occur when you enter an order line. The order line will either end up in status 22 or 99.

However, by combining these two functions you can also end up with order lines in status 29 with a reason code (status 29), because of the automatic closing functionality.

Background

Customers often do not want backorders, but want the items you have available and then close an order line.

Companies that have many customer batch orders might not be interested in manually checking and releasing CO lines that were stopped in the batch order entry. Depending on the reason why the order was stopped, you still might want to disregard the error or warning and accept the order line. Examples are when you receive an erroneous item number or when ATP indicates a shortage.

Limitations

No automatic closing is done when you change an existing order line.

If you are not using the supply model, the ATP on the requested date always controls the quantity to be closed, so MMS165 will never be displayed if automatic closing is activated.

The supply model is seen as a pre-step to order entry since one line can be divided into several lines in the supply model. The automatic closing functionality only works on the total quantity, so a line can only be closed automatically if the requested quantity is greater than the total supplied quantity from the supply model. In that case, the first supply model alternative is always the one that will be partially closed.

Note: This does not mean that the earliest delivery date is the one that will always be partially closed since a higher supply model alternative actually could have an earlier date than the first supply model alternative.

Automatic closing scenarios

Note: When you use automatic closing, the ATP screen (MMS165) will never appear. The ATP on the requested date always controls how much should be closed.

Today = 2010-11-15 (November 15, 2010).

Warehouse 100 and 200

30 pcs in stock
90 pcs as scheduled receipts 2010-11-27
Lead time date = 2010-12-15

The following scenarios are the same regardless of whether the orders are entered via batch entry or online.

No ATP check:

The line will never be automatically closed since we do not perform an ATP check (there are never any shortages).

ATP check:

40 pcs requested today, only 30 pcs available according to ATP, so 10 pcs will be closed.

Status will therefore end up in status 29.
40 pcs requested 2010-12-01 (after the scheduled receipt):

At this point enough ATP exists and no automatic closing is necessary.
150 pcs requested 2010-12-01 (ordering more than ATP at a requested delivery date after the scheduled receipt):

30 pcs will be closed since ATP is only 120 pcs while the customer requested 150 pcs.

Supply model check:

Two alternatives:

Alternative 01 = check ATP on warehouse 100
Alternative 02 = check ATP on warehouse 200

Alternative 02 = check ATP on warehouse 200. In total, 240 pcs are available at both warehouses. Finite ATP is set up so that no more than 240 pcs can be sold.

Ordering less than total ATP, for example 200 pcs:

No lines will be automatically closed since total ATP is OK.
Ordering more than total ATP, for example 250 pcs:

The order quantity on the first alternative will contain the closed quantity, in this case 10 pcs.

Picking list reporting:

If 30 pcs are ordered but only 28 pcs are picked, the remaining 2 pcs will be closed. The order line status becomes 69.

Application messages for automatic closing (CRS424)

Message 431 - 'The batch CO line is closed.' is triggered in the CO batch entry and message 432 - 'The CO line is closed.' is triggered when you report the picking lists.

Rejected orders

The rejected order functionality is activated by selecting the Action reason setting on the customer order type (OIS010/H). By selecting this check box, you can have the system accept some errors that otherwise would result in a batch order entry order becoming stopped in 'Batch Customer Order. Open' (OIS275). A reason code will be attached to the order line to inform the user why the order line has been accepted.

Action reasons

Specific action reasons are activated by connecting a reason code to the action in 'Action Reason. Open' (OIS009/E). You can define the valid action reasons by warehouse, but you can also define a record for a blank warehouse that will apply for all warehouses.

Even if the action reason, for example, says '10 Invalid product code' you can connect a reason code that contains a different text. The reason codes are set up in 'Transaction Reason. Open' (CRS103). Both the action reason and the reason code are stored on the customer order line and are available in the panel versions in 'Customer Order. Open Line' (OIS101) and 'Customer Order. Open Line Toolbox' (OIS301) - fields OBARST and OBRSC1. The reason code text is retrieved when you print the order confirmation or the invoice.

The Automatic closing setting works closely together with the action reasons, and you might get unexpected results depending on how you have defined these settings.

If activated, action reasons 10 to 60 will always close the order line and do not depend on the Automatic closing setting.
Action reasons 61 and 70 can only be set if Automatic closing is activated.
Action reason 75 can only be set if Automatic closing is deactivated; otherwise it would have triggered action reason 70 instead.
Action reasons 80¬95 are triggered regardless of the Automatic closing setting.

It is also important to understand that the settings in 'Settings - Batch Orders' (OIS278) are also involved in the result.

Action reasons 10-60 will suppress any messages and force a closed CO line to be created.
Action reasons 61-95 depend on the (OIS278) settings since the order might be stopped in 'Batch Customer Order. Open' (OIS275) because of CO warnings. For these action reasons CO errors will always end up in (OIS275).

The action reason reflects the priority. Action reason 10 has a higher priority than action reason 30. So even if both action reasons are valid, action reason 10 will override action reason 30.

In 'Settings - Customer Order Entry' (CRS720), you can enter an item that should be used when an erroneous item number is entered in the customer batch order entry. This item number is only used if action reasons are activated in (OIS010) and action reason 10 has a connected reason code in (OIS009). The erroneous item number will be added to the item description on the customer order line.

Rejected orders scenarios

Action reason 10 - Invalid product code

This action is triggered through the batch order entry, transaction SndBatchLine in OIS100MI.

If an erroneous item number is entered, the dummy item number from (CRS720) will replace the sent item number. The order line will pass through the batch order entry and end up in status 99 in OIS101. The erroneous item number is added to the item description on the order line.

Action reason 20 - Restricted product

This action is triggered through the batch order entry, transaction AddBatchLine or SndBatchLine in OIS100MI.

If the item belongs to an assortment that the customer is not allowed to buy from, the order line will be set to status 99.

Action reason 30 - Product not stocked

This action is triggered through the batch order entry, transaction SndBatchLine in OIS100MI.

If the item does not exist in the warehouse that was entered in the batch order interface, the order line will be set to status 99.

Note: This requires that you set up action reasons on the erroneous warehouse in (OIS009) and also that you are not allowed to automatically add MITBAL records in (MMS005).

Action reason 40 - Product not in promotion

This action is triggered through the batch order entry, transaction AddBatchLine or SndBatchLine in OIS100MI.

This action reason is triggered if a promotion is manually entered in the API transaction and the item is not part of that promotion. The order line will be set to status 99.

Action reason 50 - Agreement quantity limit

This action is triggered through the batch order entry, transaction AddBatchLine or SndBatchLine in OIS100MI.

This reason code is used if you get quantity warning messages from the agreement check, which happens when you order outside the minimum and maximum quantities of the agreement or you try to buy more than the agreed quantity. Since this action reason is only valid for agreement warnings, it is only valid for agreement type 2. Error messages will always stop in (OIS275).

The CO order line will end up in status 99.

Action reason 55 - Conditionally replaced (80/90)

This action is triggered through the batch order entry, transaction AddBatchLine or SndBatchLine in OIS100MI. If you enter an item warehouse combination that has been discontinued (status 80 or 90 in MMS002), this action reason will be triggered if only conditional replacement items can be found. A replacing item can be defined as conditional by selecting the 'Cond replacement' check box in 'Item. Define Relations' (MMS020/E). The CO order line will end up in status 99.

Action reason 60 - Discontinued (80/90)

This action is triggered through the batch order entry, transaction AddBatchLine or SndBatchLine in OIS100MI. If you enter an item warehouse combination that has been discontinued (status 80 or 90 in MMS002), this action reason will be triggered if no replacing item (substitution) can be found. The CO order line will end up in status 99.

Note: This requires that you set up action reasons on the discontinued warehouse in (OIS009).

Action reason 61 - Discontinued (50)

This action is used for both the batch order entry and the normal customer order entry. This action reason is triggered if the item has status 50 and cannot fully supply the requested quantity. The item will get status 80 because it will be fully consumed. The order line will get status 29 (or 39) if 'Automatic closing' is activated because it is only partly supplied.

Action reason 70 - Out of stock

This action is used for both the batch order entry and the normal customer order entry. This action reason is triggered if the ATP cannot fully supply the order line at the requested date. The CO line will end up in status 29, 39 or 99.

Action reason 75 - Backordered

This action is only triggered through the batch order entry, transaction AddBatchLine or SndBatchLine in OIS100MI. This action reason is set if the requested delivery date is earlier than the confirmed delivery date. This action reason can only be triggered if 'Automatic closing' is not activated, in other words the CO line status will still be 22. If 'Automatic closing' is activated then action reason 70 would have been triggered instead.

Action reason 80 - Redirected

This action is used for both the batch order entry and the normal customer order entry. This action reason is set if the proposed warehouse from the supply model is different than the requested warehouse. The CO line status will in most cases be 22, unless 'Automatic closing' is activated and the total supply model quantity is less than requested.

Action reason 90 - Substituted

This action is used for both the batch order entry and the normal customer order entry. This action reason is triggered if the requested item was replaced by another item in the supply model. The CO line status will in most cases be 22, unless 'Automatic closing' is activated and the total supply model quantity is less than requested.

Action reason 95 - Promotion minimum

This action is valid for both the batch order entry and the normal customer order entry. This action is triggered if the ordered quantity has been rounded up to the promotion minimum. The CO line status can be 22, 29 or 39, depending on the 'Automatic closing' setting.

Setup for automatic closing

On the customer order type (OIS010/H) you define whether or not you want to use Automatic closing. There are three options:

0 = No, backorders are always allowed and hence no automatic closing will take place.
1 = According to settings on the customer, customer address or customer local exceptions. The hierarchy is to look first at customer local exceptions, if 0 then look at customer address, if still 0 then look at the customer. So if any of these places have Automatic closing > 0 then this functionality is activated.
2 = Yes, backorders are never allowed and hence automatic closing will always take place.

You can set automatic closing on the customer (CRS610/G):

0 = No automatic closing, backorders are always allowed.
1 = Yes automatic closing, backorders are not allowed.
2 = Yes automatic closing, backorders are not allowed but can be overridden on promotion level.

You can set automatic closing on the customer address (OIS002/E):

0 = No automatic closing, backorders are always allowed.
1 = Yes automatic closing, backorders are not allowed.
2 = Yes automatic closing, backorders are not allowed but can be overridden on promotion level.

You can set automatic closing on the customer local exceptions (MFS610/F):

0 = No automatic closing, backorders are always allowed.
1 = Yes automatic closing, backorders are not allowed.
2 = Yes automatic closing, backorders are not allowed but can be overridden on promotion level.

You can override the automatic closing on the promotion line (OIS841/E) if the automatic closing setting on the customer, customer's address or customer local exceptions was set to 2:

0 = No override, automatic closing is activated and no backorders are allowed.
1 = Override, automatic closing is normally activated but for this promotion line automatic closing is overridden and hence backorders are allowed.

Setup for rejected orders

The rejected order functionality is activated by selecting the Action reason setting on the customer order type (OIS010/H).
Action reasons must be activated by connecting a reason code to the action in 'Action Reason. Open' (OIS009/E).
Reason codes are defined in 'Transaction Reason. Open' (CRS103).
Settings in 'Settings - Batch Orders' (OIS278) are defined according to your process.
In 'Settings - Customer Order Entry' (CRS720), you can enter an item that should be used when an erroneous item number is entered in the customer batch order entry.