ASM training - Backorder

Companies in the beverage industry do the ‘customer service’ on backorders mostly before the shipment. After picking, it is clear that some quantities were not available. Salespeople can call customers from the Backorder Lines function and decide with the customer further actions (deliver, postpone, backorder, no backorder). In Advanced Sales Management, it is possible to do so based on the Qty to ship from the sales order line or the warehouse shipment line.

Exercise 1 – Setup backorder policies

In the Aptean Beverage Foundation Management, you can specify default reason codes for your sales and purchase transactions. When orders are created, the header and lines will get the default for the order.

A company backorder policy can also be setup by reason codes:

• When your company has a default backorder policy, you can define that policy in the default sales order reason code. The options are:
  • Backorder in Order: The sales order line with an unavailable quantity stays open for further action. This is the “Standard” Business Central behaviour.
  • No Backorder: The sales order line with an unavailable quantity will be closed, quantity updated, and original quantity saved.
  • Backorder in Blanket Order: The sales order line with an unavailable quantity will be closed, quantity updated, original quantity saved, and the unavailable quantity will be copied to a new blanket order line.

1. Verify the setup on the reason codes in the DEMO Company. What is the default policy for sales in our DEMO company?

Exercise 2 – Order entry and backorders without warehouse activities

We are going to call our new customer, The Red Lion for their first order.

1. Open the Order Entry page from today’s call entry
2. They order 50 boxes of item 3600 WINE FRANCE SPARKLING LIGHT 75CL. In the FactBox, we already see that we only have 45 available. We will not keep the missing quantity in backorder. Since this is our standard company policy, we don’t have to do anything.
3. Next, they order 100 of item 1310 BEER CRONUS ZERO CASE 24X25CL. Also, more than we can ship, but we expect to receive new inventory. So, we select BACKORDER in the reason code field.
4. Close the order entry and apply changes.
5. In the sales order lines register the item availability in the Qty. to Ship field and release the order for further processing.
6. Open the Backorder Sales Lines page and filter on lines for The Red Lion.
7. Select the lines and execute the Process Backorder action.
8. Verify:
   • The lines in the sales order. What has changed?
   • Can you find the Blanket Sales Order that was created?
   • Create a new sales order for this customer and open the order entry page. Are you notified for blanket order lines are due? You can ask the customer if he still wants them and add them to the order as necessary.

Exercise 3 – Process backorders with warehouse activities

Let’s now create a similar order as in the previous exercise again, but now we will ship it from the SILVER warehouse.

1. Create the order for The Red Lion, select the SILVER location in the header and enter the 50 boxes of wine (3600) and 10 crates of beer (1010).
2. There is no inventory for the wine. The customer wants you to take it in backorder. Select the BACKORDER reason code in that sales line.
3. As sales order operator, your job for this order is finished now. The warehouse employees will organize the picking and shipping activities.
4. Create a warehouse shipment and warehouse picks for this order
5. Register the pick lines
6. Open the Backorder Sales Lines page and filter on lines for The Red Lion.
7. Verify the Outstanding Quantity and the Whse. Qty. to Ship fields in the lines.
8. Select the lines and process the backorders
9. Verify:
   • The lines in the sales order. What is changed?
   • Can you find the Blanket Sales Order that was created?
   • Create a new sales order for this customer and open the order entry page. Are you notified for blanket order lines are due? You can ask the customer if he still wants them and add them to the order as necessary.