RE:[sap-log-sd] Back Order Processing

Reply from Dutch on Dec 15 at 5:42 PM
Hi TW,
Some customers do not want their orders to go on backorder; if you can't fulfill their requirement they will look elsewhere to source the missing quantity or the complete quantity.
Customers may also want to receive their products in one delivery, instead of having multiple deliveries as a result of one PO. So in addition to not accepting backorders, they may also have this requirement. This means that, taking the original example of a PO for 10 items whilst you only have stock of 6, you may end up confirming zero to the customer if they only accept a single delivery of the total required quantity.
Example: you are throwing a dinner party next week Saturday and need to get a dozen bottles of wine. The first shop you go to only has 7 bottles, but can get you the remainder next month. Obviously next month is too late, so you could buy the 7 bottles and try to get the other 5 bottles from another shop (so at least you have secured some of the wine). Or you can decide to get all 12 bottles from another shop, so you know the vintage is from the same year.
Either way, enjoy Christmas!

---------------Original Message---------------
From: Typewriter
Sent: Wednesday, December 14, 2011 8:58 AM
Subject: Back Order Processing

Could you please explain back order with an example? Also please explain back order processing.

I have searched the internet but still I am not very clear on this concept.

Thank you!

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