Understanding Backorders

Backorders can be created, based on the check boxes or the backorder rules, by the Reserve Materials process, the Shipping/Issues component, the Shortage Workbench, the Picking Confirmation process (for autoship orders), and shipments processed by the fulfillment engine. Backorders are also created for the unallocated portion of partially lot-allocated sales order lines.

If a backorder needs to be created for just part of a demand line then the demand line is split. The backordering process adds a demand line for the unfulfilled quantity; the only change in the demand key for the second demand line is the demand line number (line number 2).

The following check boxes on the Setup Fulfillment and Setup Item Fulfillment pages, still apply to backorders created by backorder rules:

Term	Definition
Auto Backorder Approval	Select to enable the Reserve Materials process to process backorders without manual approval. This option enables the Reserve Materials process to create reservations for the backordered demand when sufficient stock is available. If you do not select this option, the system creates backorder demand lines with a status of Backorder, and you must approve them manually on the Update Unreserved Orders page or the Shortage Workbench before making a reservation.
Create Adhoc Requisitions	Select to enable the Reserve Materials process to create an ad hoc replenishment request when insufficient stock is available to fulfill the demand line. Ad hoc replenishment requests are also created by the Shortage Workbench if a previously fully reserved demand line is unreserved and the first backorder line is being created. Ad hoc replenishment requests can also be created by the Shipping/Issues component when short shipping a non-backorder demand line. Ad hoc replenishment requests are created only if a backorder is created. PeopleSoft Purchasing or a third-party purchasing application then processes the ad hoc replenishment request. If you do not select this check box, backorders do not create adhoc replenishment requests.

Term

Definition

Auto Backorder Approval

Select to enable the Reserve Materials process to process backorders without manual approval. This option enables the Reserve Materials process to create reservations for the backordered demand when sufficient stock is available. If you do not select this option, the system creates backorder demand lines with a status of Backorder, and you must approve them manually on the Update Unreserved Orders page or the Shortage Workbench before making a reservation.

Create Adhoc Requisitions

Select to enable the Reserve Materials process to create an ad hoc replenishment request when insufficient stock is available to fulfill the demand line. Ad hoc replenishment requests are also created by the Shortage Workbench if a previously fully reserved demand line is unreserved and the first backorder line is being created. Ad hoc replenishment requests can also be created by the Shipping/Issues component when short shipping a non-backorder demand line. Ad hoc replenishment requests are created only if a backorder is created. PeopleSoft Purchasing or a third-party purchasing application then processes the ad hoc replenishment request. If you do not select this check box, backorders do not create adhoc replenishment requests.