What is Back Order in OM? How are Backorders Handled

What is Back Order in OM? How are Backorders Handled

What is Back order? When it occurs?

In the Back Order the material gets unreserved. .  Backorders caused by Pick Releasing (PR) 

order lines when there is no or not enough stock available.  And backorders caused by shipping less,

 at Ship confirm, than what was released.

How are Backorders handled /processed?

As in previous releases, Order Management and Shipping Execution has two types of   Backorders.

 Backorders caused by Pick Releasing (PR) order lines when there is no or not enough stock available.  And backorders caused by shipping less, at Ship confirm, than what was released.

 A. Backorders after Pick Releasing with Insufficient Stock

Pick Release will process all order (more correctly shipping) lines that you selected when 

submitting PR.  It will create move order lines for each line, whether there is stock available or not.  You (or the system) will however, not be able to (auto) detail and (auto) Pick Confirm the lines where there is not enough stock available.  In R11i, you cannot switch off reservations for PR.  Also, the system will not print pick slips for lines that are not detailed.

The delivery line, which was 'Ready to Release' before running PR will be split into a quantity

 that was available for picking and a unavailable quantity.  The first delivery line will become 

status ‘Released’ (Pick Confirmed), the second 'Submitted for Release' (Move Order created, but not confirmed).  In the latter case, the ‘Details Required' status is checked.  The order line will not split at this point, but receives a 'Picked partial' status.  After Ship Confirming the Released delivery line, the original order line will be split into a 'Shipped' and a 'Submitted for Release' line  (unless the shipped quantity falls within the under shipment tolerance).  The latter will be available  for Pick Release as a 'Backorder' as soon as there is stock available.  On the sales order, there is no order or workflow status called 'Backorder'.  You will not really see any difference between a scheduled order line that was never released and a backordered line. Pick Release is able to distinguish between the two, because it allows you to release them separately.

B. Backorders Caused by shipping less than what was Released
Before Ship Confirming a Released (Pick Confirmed) delivery line, you have the option to update the shipped quantity.  If the shipped quantity is less than the picked quantity, you have can either designate the remaining quantity as 'Backordered' (meaning the quantity was lost somewhere along the picking/staging process) or leave it in staging in to assign it to a different delivery (i.e. truck was full and wait for next pick up). At Ship Confirm, any staged quantities will be split off in a separate delivery line that is immediately ready to be shipped in a subsequent delivery.  A backordered quantity will remain noted on the same delivery line.  Only when the original delivery line is interfaced through Inventory Interface/Order Management Interface, will the order line be split into a line for the shipped quantity and a new line for the backordered quantity (Awaiting shipping).  This enables you to pick the remaining quantity again in order to fulfill the complete order quantity.  This split will only happen if the backordered quantity is greater than the Under Shipment Tolerance.