The Order Entry system also supports a Backorder Flag in each sales order line item. The backorder flag in the order line determines how each order line should be handled by the order completion system.
Customer/Order Header Flag
Each Sales Order Header in the system stores a Backorder flag. The Sales Order Header Backorder flag defaults or is loaded from the Customer record for the customer the order is being entered for.
The sales order header flag is used by the system when defaulting the Backorder flag in each sales order line item. The Backorder flag in the sales order header and in each sales order line item can be modified as required during order entry (based on the field level security that has been implemented on the system).
The Sales Order Header Backorder flag is only used to default the Backorder flag in each line item that is being added to an order and the header flag is not used during order processing.
Sales Order Line Backorder flag
The Sales Order Line Backorder flag is used to determine how any backorders for the order line should be handled by the order completion system.
If the Backorder flag in the sales order line is set to Y, the system will backorder any product that cant be shipped out to the customer on the first shipment against the sales order.
If the Backorder flag in the sales order line is set to N, the system will close out or cancel any quantity for the line that cannot be completed or shipped out on the first invoice for the sales order.
Warehouse shipment
Sales Order Entry The system does not block entry of the sales order line based on the item quantity and the backorder flag in the sales order line. The system only blocks entry of the line if the inventory Backorder flag is set to Y and the quantity in the order line is greater than the available quantity for the item.
Order Completion - If the Backorder flag for the sales order line is set to N and the order is for a warehouse shipment (stocking item, vendor ship and special flags both N in the order line), the system will close out any quantity that cannot be shipped out against the line (if you have an order for 10, and only 4 can be shipped, the system will close out the remaining order quantity of 6 instead of backordering it). The warehouse lines that are processed are based on the inventory locations that are valid for the current operator based on the System Parameter OCLOCS (Order Completion Locations allowed for current operator).
Vendor Shipment
Sales Order Entry - If the Backorder flag for the sales order line is set to N, and the vendor ship flag for the line is set to Y, the system blocks entry of the order line. This prevents a situation where you place a purchase order for a vendor shipment, and the order completion program automatically closes out the sales order line that the PO has been placed for.
Order Completion Does not close out any backordered quantity for a vendor shipment sales order line.
Special Order
Sales Order Entry If the If the Backorder flag for the sales order line is set to N, and the special order flag for the line is set to Y, the system blocks entry of the order line. This prevents a situation where you place a purchase order for a special order line, and the order completion program automatically closes out the sales order line that the PO has been placed for.
Order Completion Does not close out any backordered quantity for a special order sales order line.
Nonstock Item
Sales Order Entry The Order Entry program ignores the backorder flag in the Inventory record and in the sales order line when the item being processed is a nonstock (nonstock items are always available in unlimited quantity).
Order Completion - Does not close out any unshipped quantity for a nonstock item regardless of the inventory backorder flag or the backorder flag in the sales order line being processed (nonstock items should not be set to B or backordered status since they are always available, but the code does not close out any unshipped quantities