This section describes the Backorder Logic used by the StreamV Order Processing System.
There are two different backorder flags that are used by the system.
• The Inventory Backorder Flag is used internally by your company to control whether an item can be backordered during order entry (i.e. to control if you will be purchasing any more of the item in the future). The Inventory Backorder flag is used along with the Special Order and the Vendor Shipment flags for the item to control if and how the item can be ordered from your vendors. The Inventory Backorder flag allows you to block entry of sales orders that would cause you to order an item that you no longer wish to purchase.
• The Backorder flag in each sales order line (which defaults from the backorder flag in the customer record and the backorder flag in the sales order header), determines how any backordered quantity for each order line are handled by the order completion program when the first shipment is processed against the order. If the backorder flag in a sales order line is set to N, the system will close any remaining quantity that cannot be shipped out against a warehouse line instead of backordering the item.
If the sales order line backorder flag is set to N for a vendor shipment or a special order line, the system will block entry of the line (to prevent situations where you place a PO for the order, then close out the line the PO was created for).
If the sales order line backorder flag is set to N for a nonstock item, the systems ignores the flag as nonstock items are completely allocated during order entry and they are available in unlimited quantity (meaning the backorder flag is irrelevant and should not be used).