What is Back order processing?

[Former Member]

Hi guru's

What is backorder processing and the purpose of it?

Thanks and Regards

Srinivas Kapuganti

[Former Member · Accepted solution]

Hi Srinivas

When the quantity ordered by the customer is not totally confirmed ,or

when the Requested date can not be kept keeping the present scenario in mind, then we go for "Back order" processing.

Suppose, you have only 1000 units in stock of your material M1 with you, out of which say 900 units you have already confirm or allocated/promised to your different customers.

So ,you have only 100 units left with you to serve any new order.

You are sure that before 1st of next month ,i.e after your sales closing on 30th Sept only you will get new stocks.

Suppose in this scenario, one of your most important customer in term of business ,payment etc, has dropped in with an order of 250 units which he needs within suppose 30th of this month, then what you will do ?

Since last few months you were waiting for his order, but now when you received it , you are not in a position to confirm his order keeping the present scenario in mind.

But as a businessman, I can not miss the customer as he is the most important customer for me.

So, I will take out some quantity from the quantiy already promised to different customer to meet his requirement of 250 units and this "Back order processing".

So, you can say , Backorder processing is simply doing manipulation.

Backorder can be done in two ways

1. Manual The various orders are listed amnually as per confirmation and promised quantities(ATP) are reassigned.

2.Automatic/via resheduling System does automatically taking the delivery priority field into consideration.

[Former Member]

Hi Guru,

You use backorder processing to track customer sales orders received for which the stock has not yet been shipped. Normally, this occurs when the available quantity of the item is insufficient to fill the order. The backorder process enables you to check the item quantities that are missing. Once received in stock, you can ship these shortages to your customers. Once you receive information on a backorder, use one of the following ways to handle it:

u2022 Deliver the necessary items quantity to the customer

u2022 Update the quantity (after the delivery has been shipped)

Configuration Steps in SAP R/3 for Backorder processing/Rescheduling

Step 1: Define checking group:

Sales and Distribution  Basic Functions  Availability Check and Transfer of Requirements  Availability Check -->Availability Check with ATP Logic or Against Planning -->Define Checking Groups

Step 1a: On the Change View u201CAvailability Check Controlu201D: Overview screen make all the entries and save.

Step 2: Define checking group default value:

Sales and Distribution --> Basic Functions --> Availability Check and Transfer of Requirements --> Availability Check --> Availability Check with ATP Logic or Against Planning --> Define Checking Groups Default Value.

Step2a: On the Change View u201CScope of Availability Check (Default Values)u201D: Overview screen make the entries and save.

Step 3: Carry out Control for Availability Check (OVZ9)

Sales and Distribution --> Basic Functions --> Availability Check and Transfer of Requirements --> Availability Check --> Availability Check with ATP Logic or Against Planning --> Carry out Control for Availability Check

Step3a: On the Change View u201CAvailability Check Controlu201D: Overview screen make the entries and save.

Step 4: Define Checking Rule for Backorder Processing

Sales and Distribution --> Basic Functions --> Availability Check and Transfer of Requirements --> Availability Check --> Availability Check with ATP Logic or Against Planning --> Checking Rule For Updating Backorders

Step 4a: On the Change View u201CChecking Rule for Updating Backordersu201D: Overview screen make the entries and save.

Regards,

Ritesh

[Lakshmipathi]

Dear Srinivas

Please check this help link

[Backorder Processing |http://help.sap.com/saphelp_47x200/helpdata/en/dd/55ff4b545a11d1a7020000e829fd11/frameset.htm]

thanks

G. Lakshmipathi

[Former Member]

Hello,

Using backorder processing, you can list sales documents relevant for requirements for particular materials and confirm them manually.

You can assign available-to-promise (ATP) stock to outstanding order quantities. In addition, you can withdraw already confirmed quantities and reassign them to different items.

Backorder processing is only available for materials with individual requirements.

Prase

[Former Member]

Hi,

Backorder Processing

Backorder processing is a functionality in SAP where you can change the committments and over-ride the blockage of stocks

marked against sales documents/deliveries. For e.g. you receive an order from a very important customer for material "A" but

the entire quantity of A is committed to another customer "B" via earlier sales orders and this is where BACKORDER processing helps you to change the committment and shift stock due for B to A. This is the benefit of this funtionality.

OMIH - Checking rule for updating backorders

OPJL - Define new checking rule

OPJJ - Define scope of check

V_RA - Backorder Processing

Data selection:-

Sold-to-party Customer code Mandatory

Sales Organization Mandatory

Distribution Channel Mandatory

Division Mandatory

Changed confirmed quantity :-

Tick the material you want to changed and click the Backorder button

Confirmed quantity that still can be changed are highlighted.

V.15 - Backorder List

Sales Organization Mandatory

Distribution Channel Mandatory

Division Mandatory

Regards,

Pankaj