TABLE OF CONTENTS

• Overview
• What Is a Back Order?
• Requirements for Back Orders
• How Back Order Works
  • Best Practice Recommendation
  • Step-by-Step Process
  • Result
    • Example 1: Partial Stock Available
  • What Happens If B Ord Is NOT Ticked?
    • Example 2: B Ord Not Ticked
• Interaction Between Break Line and Back Order
• Warehouse & Operational Impact
  • When used correctly, Back Orders:
  • When used incorrectly:
• Back Order Line Creation Options
  • Option 1: Add Back Order Line to Same Sales Order
  • Option 2: Create a New Sales Order
• Business Rules 

Overview

The Back Order functionality allows the system to manage situations where there is insufficient stock to fully fulfill a Sales Order, but additional stock is expected in the future.

Instead of delaying the entire order, the system:

• Picks available stock

• Places the remaining quantity on Back Order

• Tracks outstanding quantities for future fulfillment

⚠ Important:
Back Order functionality must be used together with Break Line. Without Break Line enabled, proper partial allocation and tracking cannot occur.

What Is a Back Order?

A Back Order is created when:

• Ordered quantity > Available stock

• Additional stock is expected

• Partial shipment is allowed

The system splits the order into:

• Picked (available stock)

• Back Ordered (outstanding stock)

Requirements for Back Orders

To successfully create a Back Order:

1. Break Line must be enabled

2. The B Ord (Back Order) checkbox must be ticked

3. Picking Slips must be created after the above steps

If these steps are not followed correctly, the system will not preserve the outstanding quantity.

How Back Order Works

Best Practice Recommendation

For most businesses that allow partial shipments:

• Enable Break Line

• Enable Automatic_Back_Order_Creation

• Configure default_back_order_header_creation according to business preference

• Train users to verify B Ord is ticked before creating Picking Slips

Step-by-Step Process

1. Enable Break Line

2. Click Auto Allocate

3. Tick the B Ord checkbox for relevant line items
   (If automatic rule is enabled, this may already be ticked)

4. Create Picking Slips

Result

• Available quantity is allocated to the Picking Requisition

• Remaining quantity is automatically:

  • Added as a Back Order line

  • Tracked for future fulfillment

• Line statuses are updated accordingly

Example 1: Partial Stock Available

Outcome:

• 7 units move to Picking

• 5 units are placed on Back Order

• Back Order line is created

• Customer receives partial shipment

• Remaining 5 units ship when stock arrives

What Happens If B Ord Is NOT Ticked?

If the B Ord checkbox is not ticked before creating Picking Slips:

• The system moves the Sales Order line to Picked

• Remaining quantity is not tracked

• Further picking against that line is blocked

Example 2: B Ord Not Ticked

Result:

• 6 units picked

• Line marked picked

• 4 units are no longer linked to the order

• A new Sales Order must be created manually for the remaining 4 units

⚠ This creates:

• Extra admin work

• Risk of lost sales

• Reporting inconsistencies

Interaction Between Break Line and Back Order

For Back Order functionality to work correctly:
✔ Break Line must be enabled
✔ B Ord must be ticked

Warehouse & Operational Impact

When used correctly, Back Orders:

• Prevent over-picking

• Ensure accurate stock allocation

• Improve customer service

• Maintain audit trail of outstanding quantities

• Reduce manual intervention

When used incorrectly:

• Orders close prematurely

• Remaining stock is disconnected from the original order

• New orders must be manually created

• Reporting inconsistencies occur

Back Order Line Creation Options

When a Back Order is generated, the system can handle it in one of two ways:

Option 1: Add Back Order Line to Same Sales Order

• Original Sales Order remains open

• New line is added for remaining quantity

• All activity stays under one order number

Option 2: Create a New Sales Order

• Original order closes for picked quantity

• System generates a new Sales Order for back ordered units

• Useful for financial or dispatch separation

The behavior is controlled by Business Rules (see below).

Business Rules 

Automatic_Back_Order_Creation

• Automatically ticks the B Ord checkbox

• Reduces user error

• Ensures outstanding stock is not lost

If switched OFF:

• Users must manually tick the B Ord checkbox

default_back_order_header_creation

Determines how the Back Order is structured:

• Create new Sales Order for back ordered units
  or
• Add back order line to original Sales Order

This depends on business preferences regarding:

• Financial reporting
• Order tracking
• Customer communication
• Dispatch processes