Backorder Tracking
- Mike Gonzalez
Why we Created the Backorder Feature:
So backordered items are not part of the current or historical budget spend. Instead they are moved to a future budget period. Budgets will then be more precise.
Ability to track backordered items and POs (future)
Ability for Items and Purchase History to exclude items that were backordered (future)
Backorder Feature Prerequisites
Must have the On.Care AP Invoicing Module in Addition to the Procurement Module
Even though It is not a prerequisite, facilities that have configured:
Budgets for the categories of the PO that has backordered items
Delivery schedules for the vendor that PO was sent to,
will have an easier time using this feature.
PO that you would like to backorder some or all of the items, can not have any pending invoices in the system
How to Access and Use the Backorder Feature
Go to Invoice\Open POs
Click on the Half Moon Icon next to an Open PO that you would like to Backorder
As in the past, authorized users (anyone that has access to the AP Automation platform) have the option to Zero Selected Item Quantities
Authorized users now also have a new menu option on the lower left to Backorder Selected Items and Zero Out the Rest
When selecting “Backorder Selected Items and Zero Out the Rest”:
i. Scenario 1: Original PO Partially Invoiced (Reconciled Status = “Reconciled with a backorder”)
As long as there are no invoices pending approval or rejection for that PO within On.Care, you can select which un-invoiced items you want to backorder
After clicking on “Adjust PO” all selected items will be put on a new PO that retains the original PO Number but appends a -01, etc… at the end of the PO Number and defaults to a new future delivery date
The default future PO Delivery Date for the new PO depends on the following settings for that facility:
If there is a category + facility budget and a facility + vendor schedule populated, it will default to the first delivery day of the facility + vendor schedule from the next budget period. Users can override this and choose any future delivery date, as long as it is a valid date from the facility + vendor delivery schedule.
If there is a Category + Facility Budget Period setup but no facility + vendor schedule, it will default to the first date of the next budget period. Users can override this and choose any future delivery date.
If there is no Category + Facility Budget Period setup but there is a facility + vendor schedule populated, then the delivery date defaults to today and the customer can override the default to any valid future delivery date assigned to that facility + vendor.
If there is no category + facility budget and no delivery schedule setup for that vendor + facility, users can choose any future delivery date.
All items not selected for backorder will have their quantities updated to zero and moved to the backordered PO. There is a chance we are going to change this so that the zeroed items stay on the original PO.
ii. Scenario 2: No Items Invoiced on Original PO (status = “PO Complete”) and Want to Backorder All the Items (edited)
Select all the items
After clicking on “Adjust PO” all selected items will be put on a new PO that retains the original PO Number but appends a -01, etc… at the end of the PO Number and defaults to a new future delivery date
The default future PO Delivery Date for the new PO depends on the following settings for that facility:
If there is a category + facility budget and a facility + vendor schedule populated, it will default to the first delivery day of the facility + vendor schedule from the next budget period. Users can override this and choose any future delivery date, as long as it is a valid date from the facility + vendor delivery schedule.
If there is a Category + Facility Budget Period setup but no facility + vendor schedule, it will default to the first date of the next budget period. Users can override this and choose any future delivery date.
If there is no Category + Facility Budget Period setup but there is a facility + vendor schedule populated, then the delivery date defaults to today and customer can override the default to any valid future delivery date assigned to that facility + vendor.
If there is no category + facility budget and no delivery schedule setup for that vendor + facility, users can choose any future delivery date.
iii. Scenario 3: No Items Invoiced on Original PO (status = “PO Complete”) and Want to Backorder Select Items
See Scenario 1 (above).FAQ
1)How often do you recommend our staff should go through all the Open POs and use the backorder feature to update all of the old POs that have not yet been fully invoiced.
As a best practice, we recommend that this is done at the end of every budget period (weekly/monthly)
Will my vendor receive the new backordered PO
So we don’t confuse the vendor, we don’t send them the new backordered PO
When my vendor delivers a backordered item and sends the invoice, the PO number on the invoice will be the original PO number and not the new one. Will my staff have to manually match up this invoice to the Backordered PO?
We designed this feature so that the Invoice with the backordered items will automatically match up to the backordered PO
If I have a backordered PO that some of the items were delivered and invoiced. Will I be able to backorder again all the remaining items?
Yes. This is a common occurrence in the real world and therefore we designed the backorder feature to allow for this.
I would like to backorder a PO but the half-moon icon is grayed out and doesn’t allow me to click on it.
This is probably because there are invoices associated with that PO in the system pending approval or rejection.
What will be the reconciliation status of my original PO?
“Reconciled”
How does the backordered feature have an impact on the original order?
If all of the items from the original PO were backordered, then nothing changes on the original order. If only some of the items from the original PO were backordered the system will split the order into two orders. One for the items that were backordered and one for all the remaining items. The new order will be labeled “Backorder from Order [Original Order Number]”
What happens to the original and subsequent order if its items are backordered multiple times? How will the new backordered order be labeled?
Same functionality as if you are backordering a PO for the first time. See #7 above
Will backordering an item have an impact on the items/purchase history screens?
Currently, it will not have an impact. In a future release, we expect those screens to have an option to show items/purchase history by delivery date in addition to PO Date. Therefore, when selecting the history based on the Delivery Date, any items that have a future delivery date will not be part of the items/purchase history tally.
I have multiple items on a single PO that need to be backordered. Depending on the item, my vendor gave me multiple delivery dates. How do I backorder each item so they accurately reflect all the new delivery dates?
We would recommend that you backorder all the items with the furthest out delivery date the vendor gave you.