Using Return Stock to Fill Backorders (SAP Library

Using Return Stock to Fill Backorders

Use

You can fill backordered sales orders or stock transfer orders with stock returned by customers rather than with existing merchandise on the distribution center shelf. This function (backorder fulfillment from return stock) determines how much of the return stock is to be used for this purpose and how it is to be allocated to the backorders.

The function consists of two parts:

A program that allows you to specify how much of the existing return stock is to be used for backorder fulfillment

A program that assigns this stock to specific backorders based on merchandise distribution data

The selection criteria allow you to run the program for one or more sites and one or more articles at a time. If the return stock is sufficient to cover all back orders, then the system does not need to bother with the second program (merchandise distribution), but instead immediately creates deliveries for the orders.

If a sales order specifies a storage location, then the system will only take stock from that location into account when attempting to fill the order. This means that orders that might still be only partially filled, even if there is sufficient returns stock throughout the distribution center. If the sales order does not specify a storage location, then the system takes as much stock from as many storage locations as necessary to fill the order as completely as possible. (See also Backorder Fulfillment from Return Stock.)

Integration

In the Merchandise Distribution component, you can specify how (in general) return stock is to be assigned to backorders. For example, suppose you have 150 large blue T-shirts in return stock. You have a backorder of 100 for Customer A and 200 for Customer B. In setting up the merchandise distribution table, you can determine whether the available stock is to be split evenly between the two backorders (75 for each customer), or 100 to Customer A and 50 to Customer B (so at least one customer gets a full order), or all to Customer B because it has a higher priority, or some other scheme.

In the Sales Order Processing component, the available return stock is automatically assigned to specific sales orders that are backlogged. The system then starts activities that make the stock ready for shipment. (See also Backorder Fulfillment from Return Stock.)

Activities

If you choose to run the program online, the system will display a screen showing the current return stock levels for the site(s) and article(s) chosen. You can then specify how much of the stock is to be used to fill backorders (since some of the stock may be unshippable or you may want to retain some safety stock). The program will reassign the merchandise to unrestricted stock. (You cannot, however, post the remaining stock to other stock types using this screen.) Afterwards, the program will allocate the articles to specific backlogged sales orders or transport orders according to the appropriate merchandise distribution table.

If you choose to run the program in the background, you do not have an opportunity to specify the amount of stock to be used for backorders. Instead, the system assumes that 100% of the stock is in reshippable condition and will assign it to unrestricted stock. If this is not the case, then prior to running the program, you should separate out damaged, used, or otherwise unacceptable articles and post them to a different stock type (blocked, damaged, or whatever). Then when you run the program, you know 100% of the remaining stock is ready for shipment and will be allocated as necessary.