Understanding Back Orders and Overriding Inventory in the Counter Sale Environment

To accurately price, tax, bill, and record payment, back orders or special order items are placed on a separate schedule from those marked as customer pickup with quantities that the customer is taking with them.

After the initial process to reserve and allocate, you can change the pick up quantity so that it is less than the quantity ordered for situations where the customer is able to take partial quantities with him or her.

When the sales order is confirmed, the sales order lists all pick up schedules needing a back order decision. The sales associate reviews the items, adjusts the sales order as necessary, and determines which schedule quantities to back order and which ones to cancel. Creating a backorder creates a new shipment schedule on the sales order line. Canceling the backorder quantity adjusts the current shipment schedule down to the same amount as the pickup quantity.

A deposit can be taken for goods that are back ordered, special ordered or are not immediately fulfilled at order time. Deposits cannot be taken for goods that the customer picks up and takes with them at the time the order is placed.

If the CSR has enough quantity for the transaction, and the inventory balances are not correct, and the system allows negative inventory, the CSR may override the pick-up quantity on the sales order line/schedule by using the Picking Feedback page from the sales order. The CSR can increase the pick-up quantity to be greater than what could be initially allocated or optionally they may select limited picking feedback from the main sales order pages under these conditions:

  • Negative inventory is allowed.

  • The product being shipped is a not a product kit.

    Limited picking feedback is not allowed on product kits. The Picking Feedback page must be used. After using the Picking Feedback for these negative quantities, changes to the pick-up quantity or order quantities on the Sales Order page will delete this information.

    Note:

    Product kits that contain all nonstock items are an exception and the pick-up quantity must be updated on the sales order.

  • The product is not lot controlled or serial controlled.

    Limited picking feedback is not allowed on lot or serial controlled products because the system would not know what lot or serial ID to choose. The Picking Feedback page must be used. After using the Picking Feedback page for these negative quantities, any decrease in the pick-up quantity from the Sales Order page will first reject the negative balance entries.

  • A default counter sale shipping storage location has been defined at the item or Inventory business unit level. Limited picking feedback is not allowed if a default location has not been defined. The Picking Feedback page must be used.

  • A prior putaway to this default storage location using the ordered unit of measure (UOM) as a picking UOM is present.

    The system is looking for a PHYSICAL_INV record to drive the storage location negative. If one exists, then the pick-up quantity can be overriden from the sales order. If the system does not find a storage location in PHYSICAL_INV then the Picking Feedback page must be used.

As a general rule, after changes have been made to drive a storage location negative, any subsequent changes to the pick-up quantity on the Sales Order page will attempt to adjust the pick-up quantity by first eliminating the negative balance entries. The user should reverify the picking assignments especially if the overrides were not made to the default counter sale shipping storage location.

When a negative inventory transaction is created and shipped, Inventory Batch Picking Feedback is run against the negative entries sent. Depending on how the Inventory UOM Conversion Flag is set, these entries may be converted to another unit of measure and shipped against the storage location in that unit of measure.

The UOM Conversion flag has three possible values:

  1. 0 - Use entered UOM.

    Note:

    We recommend that you use an option other than 0 - using the entered UOM could possibly subject the negative inventory demand line to UOM conversion. This flag is defined at the Inventory business unit and Inventory business unit/item level.

  2. 1 - Convert to standard UOM.

  3. 2 - Convert to default stocking UOM.

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