You can track backorders for items not in stock. Integrated item receipts and fulfillments enable you to handle backorders.
You can commit backordered items from items that you receive on purchase orders. After you commit items on backorder, you can process them for fulfillment.
For example, you enter a sales order for 5 quantities of item #XY123. The quantity on hand of item #XY123 is zero, so you end up with 5 backordered items.
When you receive 50 quantities of item #XY123 on a purchase order, you can commit 5 of them to the sales order. Then, you can process the sales order for fulfillment.
While committed orders are still open, you can change these commitments to fill other open orders. To adjust these commitments, you can use the Reallocate Items form.
If you use the Demand Planning feature, you can automate backorder item allocation. Read Demand Planning and Inventory Allocation.
To track items that are backordered, you can go to the Reports tab and click either:
Sales Back Order Report – shows items that are backordered grouped by transaction. For each transaction, the report shows the transaction number and date, item name, and customer name. It also shows the quantity ordered, quantity fulfilled, quantity back ordered, quantity on hand and quantity on order.
Inventory Back Order Report – shows items that are backordered grouped by item. The report lists the backorder transaction number, customer name, quantity ordered, quantity fulfilled, and the quantity backordered for each transaction.