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Backorders |
  
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Backorders |
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The term backorder in POSitive means that the item is not in stock. Just because an item is not in stock does not automatically prohibit sales. Accurate stock counts are an important element when tracking backorders. There is a comprehensive document titled "Seven Rules For Accurate Stock Counts" on the www.gopositive.com website which should be reviewed first.
Backorder Controls
There are several factors which affect backorders. Depending upon the combination of these factors, procedures and results will vary.
| • | Allow Backorders On Invoice - must be activated on Maintenance: System Setup: Invoice Setup |
| • | Pay When Invoiced - pay for all items, even backordered items |
| • | Pay When Received - pay only for items not backordered |
| • | Allow Negative Inventory - allows for Presale of item before a purchase order is received activated on Maintenance: System Setup: Inventory |
| • | B'Ordr Display Field - when viewing orders, layaways, and invoices. If you do not see this column, it can be made visible by going to Maintenance: Definitions: Transaction Screen Editor and select Assign Pre-Set Format. |
| • | Hold Back - while invoicing you can choose to not deliver an item which is in stock |
| • | Override Backorder - while invoicing you can choose to ignore backorder status altogether or release the item from another customer's order.
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On A Cash Sale Invoice
Backorders on an invoice cannot be converted to a pending order if there is no customer name assigned to the purchase. You should change Bill To and select a customer from the customer list. Or you will be given an opportunity to clear backorders, but this will distort current stock counts.
Backorders Found - (see Backorders Found)
Because there are items which are backordered you are given options for handling them. Generally, you do not want to choose "Fill All Backorders"
Prepaid Order From Invoice Number xxxx - This note is automatically generated when an invoice with a backorder item is paid for in full and the backordered items are retained as customer orders.
Items with Price Breaks
Backorders are handled a little differently if you have activated Price Breaks and only some of the items are in stock. For example, I have set price break at 3 for 25.00. I only have 2 in stock yet the customer wants a quantity of 4.
Rather than deliver in-stock items at price break pricing, POSitive sells them 1 at price break pricing and 1 at regular pricing. When the backorders are filled then the customer pays the same grand total amount as if all items were sold. If the customer cancels the backorder, then the customer has paid more for the items received which is closer to the normal pricing.
