How You Automatically Cancel Backordered Transfer Order Lines

During pick release, pick confirm, and ship confirm time, you can automatically cancel the remaining quantities on transfer orders that cannot be fulfilled.

Many organizations don't want to maintain requests with shortages when goods are not available or completely available at the time the replenishment is being fulfilled. In these situations, the remaining quantity not fulfilled will either be picked up in the next replenishment cycle or fulfilled from another source. Processing automatically cancels any remaining quantities that cannot be fulfilled.

Set up this option to cancel backordered quantities at the inventory organization, interorganization parameter, or subinventory level. You also have the option to override this setup parameter.

• Setup

• Overrides

Note: The automatic cancel of backordered transfer order lines does not apply to transfer orders that pass through Oracle Fusion Cloud Order Management.

Setup

You can set the option to automatically cancel the remaining quantities on transfer orders at the subinventory, interorganization parameter, and inventory organization level. The cancel decision is based on a hierarchy of options.

The decision to cancel the backordered quantities is determined based on a hierarchy of options set up at the following levels:

• Subinventory

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

  Options for this setting include:

  • Cancel remaining quantities

  • Do not cancel remaining quantities

  • Use next level in hierarchy

    If you select the Use next level in hierarchy, the inventory organization is used for intraorganization transfer orders, and the interorganization parameter is used for interorganization transfer orders.

• Interorganization parameter

  At the interorganization parameters level, select the appropriate option for the Cancel Backorders setting. This option specifies whether the cancel decision is made at this level for interorganization transfer orders where the option was not applied at the subinventory level. Use the Manage Interorganization Parameters task to set this option.

  Options for this setting include:

  • Cancel remaining quantities

  • Do not cancel remaining quantities

  • Default to source inventory organization level

• Inventory organization

  At the source inventory organization level, select the Automatically Cancel Transfer Order Backorders check box to indicate the cancel decision in cases where the lower levels in the hierarchy have defaulted up to the inventory organization level. Use the Manage Inventory Organizations task to set this option.

Note: You can override these rules manually on the Confirm Pick Slips page or from the Manage Shipments, Manage Shipment Lines, Edit Shipments, and Edit Shipment Lines pages.

Overrides

You have the ability to override the setting to automatically cancel a backordered transfer order. There are situations where a short pick at pick confirm or a short ship at ship confirm are due to issues outside of shortages. In these cases, you can create a backorder to take the quantity and process it back through the pick release process. This enables you to override the automatic cancellation in a situation where you know the full order quantity can be filled, but you need to release the line again in order to process it. This gives you the ability to allocate, pick, and ship product that is available in the warehouse.

You can override backorder processing in these three areas:

• Reservations and Pick pages

  Select the Backorder action from the Action Type menu.

• Pick confirm

  If you select a Short Pick exception reason code when picking a line short, then automatically canceling backordered lines is not initiated. In this situation, the status on the delivery line is moved to a Ready to Release status.

  Note: This creates a split delivery line in a Ready to Release status, and not a Backorder status.

• Shipping

  The automatic cancellation of backordered transfer order lines can be overridden from the action menus on the Shipping pages (Manage Shipments, Edit Shipments, Manage Shipment Lines, and Edit Shipment Lines). Select the Backorder or Cycle Count actions from the Action Type menu