Back order processing for kits
The Create OE Back Orders At Stage option in SA Administrator Options-Documents-Sales Orders-Back Orders controls when back orders, both standard and partial kit, are generated.
A component that is not required for the kit assembly can create a partial back order when its KP Component Setup record is designated as such. When a kit parent product allows back orders to be created at the component level, you can gather and ship the available components and back-order the remaining components, which is a partial kit back order.
You can also delay billing until all components are shipped and partially bill for the kit according to the shipment.
Back order creation
These tables provide examples of the rules used to determine whether back orders are created.
If a customer orders 10 kits and you can immediately gather all the components needed to ship 10 kits, no back orders are necessary. This table shows how a transaction is handled when you can build and ship the quantity ordered.
| -00 | Qty Needed | Qty Ordered | Qty Available | Qty Reserved |
|---|---|---|---|---|
| Kit Parent | 10 | 10 | ||
| Component A | 10 | 10 | 100 | 10 |
| Component B | 20 | 20 | 100 | 20 |
| Component C | 30 | 30 | 100 | 30 |
| Component D | 40 | 40 | 100 | 40 |
All the components are reserved for the order, they are picked from inventory, and shipped to the customer. The customer is invoiced for all 10 units of the kit parent product.
This example shows how back orders are created at the line-item level and at the component level. The shaded lines represent the component-level detail. Assume all components of the kit parent product can be back-ordered, and the entire line item is billed when the full kits are shipped. The quantity needed column is the total number of components needed to fill the line.
| -00 | Qty Needed | Qty Ordered | Qty Available | Qty Reserved |
|---|---|---|---|---|
| Kit Parent | 10 | |||
| Component A | 10 | 10 | 100 | 10 |
| Component B | 20 | 20 | 100 | 20 |
| Component C (optional) | 30 | 30 | 20 | 20 |
| Component D (optional) | 40 | 40 | 19 | 0 |
Components A and B are shipped in their entirety. Components C and D do not have a sufficient quantity to fill the order and are optional components. You ship the quantity available (20) of component C, and you back-order the entire quantity of component D (40) and do not reserve any inventory. Because the value of the back-ordered components is minor in comparison to the components that are shipped on the order with the -00 suffix, bill the customer for the 10 kits.
On the back order, the kit parent product appears as a memo line with an order quantity that is always 1. The partial-kit back order contains components C and D.
| -01 | Qty Needed | Qty Ordered | Qty Available | Qty Reserved | Qty Shipped |
|---|---|---|---|---|---|
| Kit Parent | 1 | ||||
| Component C | 10 | 10 | 0 | 0 | 0 |
| Component D | 40 | 40 | 19 | 19 | 0 |
When the components are received, the -01 order is filled, and the customer is not billed for any units because the customer was previously billed for 10 kits.
Miscellaneous information
Kit components can be tied to purchase orders (PO) and warehouse transfers (WT). If a kit component is a prebuilt kit, it can be tied to a work order. These ties are maintained when either type of back order is generated. You can enter serial and lot numbers on kit components in Sales Shipping Feedback Entry.
The quantity on the parent line does not update Sales Manager and Data Warehouse systems because a kit is not being shipped on a partial kit back order. Sales Manager is updated for a partial kit line with amounts only, not quantity. The components of this kit are only the components that are being back ordered.