Backorder Processing 

Purpose

You use backorder processing to track customer sales orders received for which the stock has not yet been shipped. Normally, this occurs when the available quantity of the item is insufficient to fill the order. The backorder process enables you to check the item quantities that are missing. Once received in stock, you can ship these shortages to your customers.

Once you receive information on a backorder, use one of the following ways to handle it:

●     Deliver the necessary items quantity to the customer

●     Update the quantity (after the delivery has been shipped)

●     Close the remaining open quantity for the row

In addition, you are able to deliver a zero quantity.

Process Flow Examples

The examples below illustrate several typical business scenarios for backorder processing.

Regular Backorder Process

Your customer calls and orders 100 chairs from your company, but you have only 80 chairs in stock. You can deliver the available items immediately and the remainder when you receive them from your vendor.

       1.      From the SAP Business One Main Menu, choose Sales - A/R ® Sales Order.

       2.      Create a new sales order for 100 chairs for the current date.

For more information, see Creating Sales Documents.

       3.      Choose Sales - A/R ® Delivery.

       4.      Copy the sales order you just created to the delivery changing the quantity to 80. For more information, see Draw Document Wizard.

       5.      Choose Sales - A/R ® Sales Reports ® Backorder

The system will display a backorder for 20 chairs.

       6.      To enter the 20 items you received from your vendor, choose Purchasing - A/P ® Goods Receipt PO.

       7.      Create a new delivery to provide the customer with 20 remaining items.

If you run the Backorder report again, you will see that a backorder no longer exists for the customer.

       8.      Choose Sales - A/R ® A/R Invoice and issue an A/R invoice for 100 chairs.

You can update the Quantity and Delivery Date fields for the partially delivered sales order lines.

You can decrease the quantity to the Delivered Qty field level. You can also increase the quantity.

Backorder Process Based on Customer Priorities

Your company has a shortage in tables. Two of your biggest customers, Blink and Zeroll, have ordered 100 tables each, but they have each received only 50 tables so far. Both companies are still waiting for another 50 tables. Finally, you receive 50 more tables.

       1.      From the SAP Business One Main Menu, choose Sales - A/R ® Sales Reports ® Backorder.

This report display two backorders, each for 50 tables, for your customers Blink and Zeroll.

       2.      Choose Sales - A/R ® Delivery.

Since Zeroll is your most important customer, you create a delivery for the 50 tables you received and ship them to Zeroll.

Blink must wait another week for the delivery of 50 additional tables.

Manual Backorder Closure

Zeroll orders 50 tables, 100 chairs, and 40 boards. However, you have 40 tables, no chairs, and 300 boards in stock. You create a delivery for 40 tables and 40 boards and send it to the customer.

A week later you receive another 50 tables and 100 chairs. Unfortunately, one chair has a defect.

       1.      From he SAP Business One Main Menu, choose Sales - A/R ® Delivery.

       2.      Create a delivery for 10 tables remaining on the order and 99 chairs and send it to Zeroll.

Following negotiations with the customer, you decide to cancel the open sales order for one missing chair.

       3.      To cancel the order for the missing chair, select the line in the sales order and choose Data ® Close Row.

The delivery is now complete and you can send the A/R invoice for 50 tables, 99 chairs, and 40 boards to Zeroll.

In some cases, due to the item shortages, you cannot deliver an item as planned. To correct this, you enter a zero quantity for that line in the delivery or A/R invoice. The open quantity then appears in the Open to Ship field.