Show TOC

Process documentationBackorder Processing Locate this document in the navigation structure


You use backorder processing to track customer sales orders received for which the inventory has not yet been shipped. Normally, this occurs when the available quantity is insufficient to fill the order. The backorder process lets you check how much is missing, and once the inventory is replenished, you can ship the required quantity to your customers.

When you receive information on a backorder, handle it in one of the following ways:

  • Deliver the necessary 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.


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 displays 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. When you run the Backorder report again, you 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.

Note Note

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.

End of the note.
Backorder Process Based on Priority Customer

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 displays two back orders, 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. 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 the SAP Business One Main Menu, choose   Sales - A/R   Delivery  .

  2. Create a delivery for the 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.

Note Note

In some cases, due to 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.

End of the note.