Cancelling Backorders FAQ

Question: How is a backorder cancelled?

Answer: A backorder occurs if you cannot fully allocate (and pick) an order line item. Depending upon the nature of your business, you may want to automatically cancel backorders based on a specific cancel after date or based on shipping less than what was ordered, or you may want to manually cancel backorders. The following table summarizes programs that affect backorder cancellation.

Program	Description of Affect on Backorders
Customer Service Control Maintenance	Auto Cancel After Date Processing check box - If this check box is selected, all sales order line items with a cancel after date less than today are cancelled in Pick Demand Create and Print, regardless of being backordered or allocated (unless there is an open pick demand). If this check box is cleared, then you need to manually cancel backorders. Set Cancel After Date = Required Date check box - If this check box is selected, a cancel after date is assigned to every sales order line based on the required date.
Customer Maintenance	Cancel Backorder check box - This initially defaults from the Customer Maintenance option, and subsequently defaults during pick demand confirmation. If this check box is selected during pick demand confirmation, then a manual inventory adjustment will not backorder the sales order line item. This option only functions in conjunction with line items for which pick demands are printed.
O/E Line Item Entry	Cancel Backorder column - This defaults from Customer Maintenance (see explanation above), but can be manually selected or cleared for any line item. Cancel after Date column - This is the date after which you want to cancel the remainder of any sales order line item from being picked and shipped. This defaults based on settings in Customer Service Control Maintenance (see explanation above), but can be manually entered for any line item.
Cancel After Date Update	This program allows you to manually and selectively cancel backorders based on the cancel after date.
Customer Backorder Allocate or Product Backorder Allocate	The Cancel Line button in the ribbon allows you to manually cancel backorders.
Pick Demand Create and Print	When the Auto Cancel After Date Processing check box is selected in Customer Service Control Maintenance, all sales order line items with a cancel after date before today are cancelled, regardless of being backordered or allocated (unless there is an open pick demand). Additionally, line items that are fully backordered are cancelled for sales order line items for which the Cancel Backorder check box is selected when pick demands are printed. Example An order has one line item for 50 units, the Cancel Backorder check box is selected for the line item, and 30 units are allocated. A pick demand is printed for the order, and the other 20 units are cancelled. Example An order has two line items and the Cancel Backorder check box is selected for both. The first line item is for 25 units and has 25 units allocated. The second line item is for 30 units and has 10 units allocated. A pick demand is printed for 25 units of line item 1 and 10 units of line item 2. The remainder of 20 units for line item 2 are cancelled. Example An order has one line item for 10 units, and the Cancel Backorder check box is selected for the line item. None of the 10 units can be allocated. No pick demand can be printed for this sales order, so this order line is not cancelled. If this backorder gets partially filled (6 units), then a pick demand is printed and the remainder (4 units) is cancelled.
Confirmed Pick Demand Inventory Adjust	If the Cancel Backorder check box is selected for a line item, and the line item is partially backordered, the backordered quantity is cancelled when inventory is adjusted for a pick demand for the line item.

Example 50 units of line item 1 are ordered. The customer wants to cancel any backorders if it is shipped short or if a specific future date (1/3/2020) had passed. You select the Cancel Backorder check box for the line item and enter 1/3/2020 in the Cancel After Date column for the line item. The Auto Cancel After Date Processing check box is selected. If less than 50 units are shipped before 1/3/2020, the remainder are cancelled. If none are shipped by 1/3/2020, all 50 are cancelled when Pick Demand Create and Print is run on 1/4/2020.