Question: The order status of our order is Error. Why has this occurred and what is required to fix this situation?
Answer: The most common reason for an order status of Error is described in the following example:
On-hand quantity is 100 each of product A.
You enter two sales orders for 50 units each. Now 100 of the 100 on hand are allocated.
Before printing pick demands, you stock adjust 25 units out of inventory. The following is now true:
The two sales orders both have 50 ordered and 50 allocated.
Inventory Matrix Inquiry shows 75 on hand and 100 allocated.
Upon completing the stock adjustment, you receive a report stating that there are sales orders for the product adjusted out of inventory, informing you that you should review the situation.
When you attempt to create a pick demand for one of the sales orders, it is okay. There are 75 on hand and the first pick demand needs 50.
When you attempt to create the second pick demand for the second sales order, there is a problem. It needs 50 (50 ordered, 50 allocated on the sales order) but there are only 25 left on hand. An alert report is generated indicating there is a problem, the sales order status is set to Error, and the quantity on the sales order is backordered.
The order status of Error will be cleared by the system when the order is touched again (backorder is released if available inventory, pick demand is created, etc).