Working with Soldout Controls (WSLD)

Soldout control codes define which calculation the system uses to determine when to sell out an item. When a customer orders a soldout item in order entry or order maintenance, the order line is automatically closed with a status of Soldout. The soldout units and dollars are updated in the Item table, Item/Offer table, Source Code table and order history tables. You can define a soldout control code for an item in the S/O control field on the second item screen in item maintenance, or on the SKU screen if the item has SKUs. If you do not define a soldout control code for an item or SKU, it will never sell out automatically in order entry/maintenance.

Brokered backorders? If you use the Order Broker to fulfill backordered items, then unavailable items are otherwise eligible for brokering are submitted to the Order Broker rather than selling out. See Brokered Backorders for a general overview, and see Brokering Items with Soldout Control Codes for details.

In this chapter:

• Soldout Calculation

• Soldout Calculation for Eligible Warehouses

• What Happens when you Sell Out and Item in Order Entry?

• Process Auto Soldouts

• Disregarding Soldout Controls for Non-Allocatable Warehouses

• Projected Returns

• Work with Soldout Control Screen

• Create Soldout Control Screen

Soldout Calculation

The Status field for the soldout control code defines the calculation the system uses to determine when to sell out the item if it is not eligible for fulfillment through the Order Broker Integration; see Brokered Backorders for an overview.

Status	Description
Sell Out Immediately	Sell out immediately, regardless of available on-hand stock. You would use this status code if you have open orders for an item that you now determine is sold out. Only items with this status are eligible for cancellation through Processing Auto Soldout Cancellations (MASO).
Include On Order Quantity in Soldout Calculation	Sell out when the available quantity is less than or equal to zero, including the on order quantity and projected returns in the soldout calculation: (On-order + on-hand + projected returns) - reserved < 0 The system includes projected returns if you specify a quantity in the Projected return field for an item or SKU; see Projected Returns. The system includes the on-order quantity for pending putaway detail records that are associated with a pending putaway warehouse whose “final destination” warehouse is allocatable in this calculation; see Pending Putaway Overview.
Exclude On Order Quantity in Soldout Calculation	Sell out when the available quantity is less than or equal to zero, excluding the on order quantity and projected returns in the soldout calculation: On-hand - reserved < 0

Soldout Calculation for Eligible Warehouses

When the system sells out an item with a soldout control code of 2 or 3, the system limits the soldout calculation to the eligible warehouses instead of all allocatable warehouses.

• If you define a warehouse override for the order or order line, the system limits the soldout calculation to that warehouse.

• If a warehouse list is associated with the SCF for the order ship to, the system limits the soldout calculation to the warehouses for the selected warehouse list and the item’s primary warehouse.

• If a warehouse override has not been defined, or the SCF for the order ship to is not associated with a warehouse list, the soldout calculation includes all allocatable warehouses.

Note: When the system sells out an item with a soldout control code of 1, the soldout calculation includes all allocatable warehouses.

Example 1: Item SO10 exists in the following warehouses.

Warehouse	Open PO Qty	PO#	On Hand	Reserved	Available
206	20	112	10	5	5
207	0	201	20	20	-5

You add item SO10 to an order for 10 units. A warehouse override has been defined for the order for warehouse 207. The soldout code assigned to item SO10 is 2, which means the system uses this calculation to determine when to sell out the item:

(On-order + on-hand + projected returns) - reserved < 0

Because a warehouse override has been defined, the system only includes warehouse 207 in the soldout calculation:

(0 + 20 + 0) - 20 = 0

Because the quantity is not greater than 0, the system sells out the item.

If a warehouse override had not been defined, the system would have reserved the item because the soldout calculation would have included warehouses 206 and 207:

(20 + 30 + 0) - 25 = 25

Example 2: Item SO20 exists in the following warehouses.

Warehouse	Open PO Qty	PO#	On Hand	Reserved	Available
206	20	112	10	5	5
207	0	201	20	20	-5
601	25	356	30	20	10
602	40	475	40	25	15

You add item SO20 to an order for 1 unit. The SCF for the order ship to on the order is associated with a warehouse list containing warehouses 601 and 602. The soldout code assigned to item SO10 is 3, which means the system uses this calculation to determine when to sell out the item:

On-hand - reserved < 0

Because a warehouse list has been defined, the system only includes warehouses 601 and 602 and the item’s primary warehouse 206 in the soldout calculation:

80 - 50 = 30

Because the quantity is greater than 0, the system does not sell out the item.

Example 3: Item SO30 exists in the following warehouses.

Warehouse	Open PO Qty	PO#	On Hand	Reserved	Available
206	20	112	10	5	5
207	0	201	20	20	-5
601	25	356	30	20	10
602	40	475	40	25	15

You add item SO30 to an order for 1 unit. A warehouse override is not defined and the SCF for the order ship to is not associated with a warehouse list. The soldout code assigned to item SO30 is 3, which means the system uses this calculation to determine when to sell out the item:

On-hand - reserved < 0

Because a warehouse override and a warehouse list has not been defined, the system includes all allocatable warehouses in the soldout calculation:

100 - 70 = 30

Because the quantity is greater than 0, the system does not sell out the item.

What Happens when you Sell Out and Item in Order Entry?

When you enter an item in order entry that is sold out, the system:

• adds the item with a status of Soldout

• does not increase the order totals

• does not display an ordered quantity or extended price (although the unit price does appear)

The soldout units and dollars are updated in the Item table, Item/Offer table, Source Code table and Order History tables.

If a partial quantity of the item is sold out on the order line, the appropriate quantities and prices display. For example, if the customer orders 10, 8 units reserve or go on backorder, and 2 units sell out, the totals for the order line reflect 8 units. The order line status will be open.

See Working with Items on the Order.

Accompanying items: If an accompanying item is associated with a soldout item, the system also sells out the accompanying item.

Promotional pricing incentives: If a soldout item has promotional pricing incentives associated with it, the incentives will still be offered to the customer during Order Entry.

Set items: See Reserving Inventory for Set Orders for a discussion of how the system handles soldout control codes assigned to set items and their components.

Process Auto Soldouts

Use the Process Auto Soldouts menu option to cancel orders for items that have become sold out since the time you entered them.

When you process auto soldouts, you have the option of updating the soldout control code in the SKU table automatically for each backordered item. See Processing Auto Soldout Cancellations (MASO).

Note: You can define a soldout control code in the Default Soldout Control Code (D72) system control value. This code will default when you create items and SKUs, although you can override it.

Disregarding Soldout Controls for Non-Allocatable Warehouses

If the Disregard Soldout Controls for Non-Allocatable Warehouses (J27) system control value is selected, the system disregards soldout control rules for inventory reserved against a non-allocatable warehouse.

• When you enter an item in order entry, the system reserves the item against the non-allocatable warehouse, regardless of the soldout control code defined for the item. If the item cannot be reserved, the system backorders the item in the non-allocatable warehouse.

• When you process auto soldouts, the system bypasses any order associated with a non-allocatable warehouse. The system considers an order associated with a non-allocatable warehouse if:

- A non-allocatable warehouse is defined for one or more lines on the order, or

- A non-allocatable warehouse is defined as the backorder warehouse for one or more lines on the order, or

- A non-allocatable warehouse is defined on the order header.

You can reserve items against a non-allocatable warehouse if the Reserve from Non-Allocatable Warehouse (J25) system control value is selected.

Brokered backorders: Even when the item’s OROB eligible field is selected, the item reserves against the non-allocatable (retail) warehouse if the order type is associated with that warehouse.

Projected Returns

If you expect to be able to fulfill a certain number of backorders for an item using returns from your customers, you can prevent that number of orders from selling out automatically. For example, if you currently did not have any of item AA100 on hand, but you project at least 10 units will be returned, you can put the next 10 units ordered on backorder instead of having them sell out; then, when you receive the returned units from the customers, you can fulfill these backorders.

How to set the projected return total: Use the Projected returns field to specify the number of units you expect to receive in customer returns toward the fulfillment of backorders. This field appears on the Create SKU 1 of 2 (With Overrides) Screen, the Create SKU 2 of 2 (With Overrides) Screen, or the Create Item (Base Information) Screen for non-SKU’ed items.

When a return is processed, the system automatically subtracts the number of units returned from the number you initially entered in the Projected returns field. The number will never be less than 0, however. For example, if you initially enter a value of 10 in this field, and 11 units of this item are returned, the Projected returns field will show a value of 0 when the returns are processed. Updating this field does not affect any orders already entered.

Note: The system checks this field only if the item has a soldout control value of Include On Order Qty in Sold Out Calculation. If the item has a soldout control value of Sell Out Immediately or Exclude On Order Qty in Sold Out Calculation, the system does not retain any units from selling out based on projected returns. The system does not consider this field when determining whether a backordered line is eligible for fulfillment through the Order Broker; see Brokered Backorders for background.

Projected return calculation: If you specify a number of units in the Projected returns field, this number is included in the total number of units that the system will backorder before selling out the item. When an item has a soldout control value of 2, this total includes:

• on-order quantity (on unreceived purchase orders)

• projected return quantity

For example, item AA100 has

• {on-hand quantity 5}

• on-order quantity = 20

• projected return quantity = 10

• {total quantity to reserve = 5}

• total quantity to backorder =30

If you enter an order for 35 units or fewer, the item will be backordered and not sold out. However, if there were already a backordered quantity of 20, only orders for 15 units or fewer would be backordered and not sold out.

Brokered backorders: The system does not consider the projected returns quantity when determining whether to assign the item to the Order Broker for fulfillment. See Brokered Backorders for an overview, and Brokering Items with Soldout Control Codes for details.

Work with Soldout Control Screen

Purpose: Use this screen to create, change, delete, and display these codes.

How to display this screen: Enter WSLD in the Fast Path field at the top of a menu or select Work with Soldout Controls from a menu.

Field	Description
Code	Represents the item soldout control. Alphanumeric, 2 positions; optional.
Description	The description of the soldout code. Alphanumeric, 30 positions; optional.
Status	Represents the soldout status. Valid Values: • Sell Out Immediately • Include On Order Qty in Sold Out Calculation • Exclude On Order Qty in Sold Out Calculation Optional.

Screen Option	Procedure
Create a soldout control	Select Create to advance to the Create Soldout Control Screen.
Change a soldout control	Select Change for a soldout control to advance to the Change Soldout Control Screen. At this screen you can change any information except the soldout control code. See Create Soldout Control Screen for field descriptions.
Delete a soldout control	Select Delete for a soldout control to delete it. Delete soldout control records with caution. The soldout control code is assigned at the item level. When the control applies to a item on an order, the status of the item remains open if you delete the control code before notifying the customer. You may wish to generate a report identifying the orders that might be affected before deleting the code. See Processing Auto Soldout Cancellations (MASO). Note: You can delete this code even if it is assigned to an item. The next time you maintain the item you will receive a message indicating that the code assigned to the item is not found.
Display a soldout control	Select Display for a soldout control to advance to the Display Soldout Control Screen. You cannot change any information on this screen. See Create Soldout Control Screen for field descriptions.

Create Soldout Control Screen

Purpose: Use this screen to create soldout control codes.

How to display this screen: At the Work with Soldout Control Screen, select Create.

Field	Description
Code	A code that defines the type of soldout handling that applies to an item. You enter this code in the S/O control field on the second item screen in item maintenance, or on the SKU screen if the item has SKUs. If you do not enter a soldout control code for an item or SKU, it will never sell out automatically in Order Entry or Order Maintenance. You can define a soldout control code for: • Items that must be sold out immediately, regardless of available quantity • Items whose available quantity is less than or equal to zero (not including open purchase orders) • Items whose available quantity is less than or equal to zero (including open purchase orders) See the Sts (Status) field. Alphanumeric, 2 positions. Create screen: required. Change screen: display-only.
Description	Text that describes the code. Alphanumeric, 30 positions; required.
Sts (Status)	A number that directs the system whether to close a soldout line item during Order Entry or Order Maintenance. Valid values are: • Sell Out Immediately = Sell out immediately, regardless of available on-hand stock. You would use this status code if you have open orders for an item that you now determine is sold out. Only items with this status are eligible for cancellation through the Auto Soldout Cancellation program. • Include On Order Qty in Sold Out Calculation = An item is sold out when this condition is met: (On-order + on-hand) - reserved < 0 If you specify a quantity in the Projected return field for an item or SKU, this quantity is also included in the calculation above. See Projected Returns. The system includes the on-order quantity for pending putaway detail records that are associated with a pending putaway warehouse whose “final destination” warehouse is allocatable in this calculation; see Pending Putaway Overview. • Exclude On Order Qty in Sold Out Calculation = An item is sold out when the following condition is met: On-hand - reserved < 0 Required.