Subinventory Parameters for Transfer Orders

Transfer orders represent demand and supply in a single document. When goods are not completely available at the time the transfer order is being fulfilled, processing can automatically cancel the remaining quantity on a transfer order line that would normally be backordered.

Use the Manage Subinventories and Locators task to set the Cancel Backorders option at the destination subinventory level. This option specifies whether the cancel decision is made at this level for transfer orders that are being delivered to a specific destination subinventory.

The three possible values for the Cancel Backorders option include:

Cancel Backorders Option	Description
Cancel remaining quantities	Automatically cancel the remaining quantities on transfer order backorders.
Do not cancel remaining quantities	Do not automatically cancel the remaining quantities on transfer order backorders.
Use next level in hierarchy	Depending on the transfer order type, the inventory organization or interorganization parameter is used to determine whether or not to automatically cancel the remaining quantities on transfer order backorders. Intraorganization transfer order uses inventory organization Interorganization transfer order uses interorganization parameter

In the Setup and Maintenance work area, use the following to set the Cancel Backorders option at the destination subinventory level:

• Offering: Manufacturing and Supply Chain Materials Management

• Functional Area: Inventory Management

• Task: Manage Subinventories and Locators