TOPICAL ESSAY

Oracle Corporation
Backorders in Release 11i

Author: Michael Cummings

Creation Date: September 21, 2001
Last Updated: October 12, 2001
Version: 1

Copyright (C) 2000 Oracle Corporation

All Rights Reserved
Document Control

Change Record

Date Author Version Change Reference

21-Sept-01 Michael Cummings 1 No previous document

Reviewers

Name Position

Vidyesh Mishra Senior Development Manager.

Distribution

Copy No. Name Location

1
2
3
4

Backorders in Release 11i Document Control ii

BackOrders11i.doc (v. 1 )
 Contents

Document Control ..................................................................................................................... ii

Introduction: Backorders in 11i.2..............................................................................................1

Release Statuses .........................................................................................................................2

Backorder at Pick Release..........................................................................................................6

Backorder at Ship Confirmation.................................................................................................7

Transaction Flow for Backorders ...............................................................................................9

Scenario 1: Shortage at Detailing .............................................................................................10

Scenario 2: Shortage Reported at Pick Confirm.......................................................................12

Backorders and Cycle Counting..............................................................................................14

Backorders and Over picking ...................................................................................................16

Backorders in Release 11i Document Control iii

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Introduction: Backorders in 11i.5.2

The purpose of this document is to describe the functional flow of the Backorder
process in release 11i.5.2 Shipping Execution.

The Backorder status of the Delivery line was introduced with the offering of the
WMS Inventory Cross Docking functionality in Release 11i. The primary reasons behind
this feature was to: 1) provide Order Management with better visibility to the status of a
shipment line, and, 2) provide cross docking capability within the WMS system against
backordered delivery details upon receiving new material. When Cross Dock was
integrated into the Shipping product, the system gained new RELEASED_STATUS
values, including Backordered status. Statuses of, Not Ready for Release, Ready to
Release, Released (to WMS), Backordered, Staged and Shipped are visible at the line
level.

The development of the cross docking solution and the addition of the backordered
status provides the benefit of having all the backorder logic inone place (Ship Confirm)
instead having the code in two places, Ship Confirm for completely backordering a
delivery, and in the OM interface for partially shipped lines.

Moving the all backorder logic to ship confirm will provide quick turnaround on
pick releasing partially Backordered lines as well as lines in completely backordered
deliveries. Once the backordered delivery lines are staged, a user can reopen a confirmed
deliver to include backordered lines before setting the delivery to intransit.

In addition, other source systems with backordering requirements can make a generic
call to the backorder API.

Backorders in Release 11i Introduction: Backorders in 11i.5.2 1

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Release Statuses

The following table depicts the release statuses supported in 11i.5.2

RElEASE_STATUS Description

N Not Ready for Release

R Ready for Release

S Submitted to Warehouse

B Backordered

Y Staged

X Not Applicable

D Cancelled

C Shipped

The user will not see the data base values of N,R,S,B,Y,X C but will have visibility to
the description in the Shipping Transaction Form in the Picked Status column when
viewing a line. The statuses will also be visible in Order Management through the action
button, additional information, deliveries tab.

The following are the status descriptions and an example of when it would be seen on
the delivery line.

Not Ready for Release

This status occurs when a delivery line is manually imported into Shipping Execution
using the Import Delivery Line program prior to the line reaching the shipping workflow
in OM.

Ready for Release

This status occurs when an order line has reached the Shipping Workflow activity in
Order Management meaning the line has been booked, scheduled and imported into
Shipping Execution.

Submitted to Warehouse.

This status is displayed when Pick Release is run. The Pick Release process creates a
Move Order Header & Mover Order Line in Inventory. This is a common status for
users that perform a two-step pick release process. This status indicates that inventory
allocation has occurred however pick conformation has not yet taken place.

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 Backordered

The status of Backorderd is assigned to a line under the following circumstances.

1) The Pick Release process attempted to allocate inventory to the line and all or a
partial quantity of the item was not available. In this case the system automatically
backorders the discrepant quantity.

2) At Ship confirm the user enters a shipped quantity for an item that is less than the
original requested quantity.

3) The user Backorders and entire delivery.

4) The user records a missing quantity by transferring a reservation to cycle count.

Staged

The line receives the status of staged once inventory has been allocated and pick
confirmed. The allocation step and the pick confirmation step can be done manually
or automatically based on business needs. This is determined by a set up step in
Shipping Parameters.

Shipped.

The Shipped status indicated that the delivery that the line is assigned to has been set
to intransit and that the OM and Inventory interfaces have run.

Not Applicable

The Not Applicable status applies to non-shippable order lines. An example would
be lines that are invoiced but not physically shipped. Items such as service and
warranty would have statuses of Not Applicable.

Cancelled

The cancelled status applies when the order line has been cancelled in OM.

Backorders in Release 11i Release Statuses 3

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 The following diagram depicts the delivery detail status flow.

Backorders in Release 11i Release Statuses 4

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 N
Not Ready for
Release

R Confirm Delivery:
Ready for Release unassign unreleased
lines

S
Pick Release Submitted to
Warehouse

B
Pick Confirm
Backordered

Y X
Staged Not Applicable

split/unassign
staged qtys,
split split/unassign
unassign lines
backordered qtys staged items
w/o inv. controls Confirm Delivery
of picked lines;
and unreserve,
backorder, split/unassign
backordered qtys
of nonpickable lines

Re-open Delivery Set Delivery In Transit

C
Shipped

Inventory Interface
inv_interfaced_flag = 'Y'

OM Interface
oe_interfaced_flag = 'Y'

Backorders in Release 11i Release Statuses 5

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Backorder at Pick Release
One way a delivery line detail can receive a picking status of Backordered is by Auto-
Backorder. When the system determines insufficient inventory exists at the time of
inventory allocation, it automatically splits the line if partial quantities are released and
changes the status to Backordered for the unreleased quantity.

Picking Steps
1. Pick Release Creates Pick Wave Move Order Header.

2. Pick Release Creates Move Order Line.

3. Move Order Line is Allocated at Pick Release or at Subsequent Step.

4. Inventory updates Shipping with results of allocation

• If a shortage exists (the quantity requested is greater than the quantity allocated
on the move order line) Shipping Performs the Auto Backorder Routine.

AutoBackorder Routine
1. Split delivery line

• The detailed quantity remains on the original line. The status of the original line
is progressed (if the status was “Submitted for Release”, it becomes “Released.”
If the status was “Released” it becomes “Staged.” If the status was “Staged” it
becomes “Shipped.”

• The difference between the requested quantity and the detailed quantity is
indicated on the second line (the new line resulting from the split). The status of
the new line is “Backorder”. The new delivery line will have no value in its
move order line reference field (a new move order line for this delivery line will
be created when the delivery line is pick released).

2. Update the Move Order Line

• Shipping will call Inventory to change the requested quantity on the move order
line. The new requested quantity should equal the allocated quantity.

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Backorder at Ship Confirmation
Backordering also happens at Ship Confirmation either by backordering the entire
delivery, in which case all delivery lines that are associated with the delivery will receive
a picking status of backordered. Or the user can enter a shipped quantity of less than the
requested quantity to backorder a partial quantity of the items being shipped.

Picking Steps
1. Pick Release Creates Pick Wave Move Order Header and Line(s)

2. Move Order Line is Detailed

3. Move Order Line is Pick Confirmed

4. Delivery is Backordered at Ship Confirmation

5. If status of “Planned”, keep LPN and Delivery assignment. Otherwise unpack if

packed. .

6. Change line Status to Backordered.

WSH updated
WSH Update Qty detailed < Qty delivery detail
No
Shipping START Requested? status to Released,
Staged or Shipped

Yes

WSH updates
WSH updates OM WSH changes
Move Order Line
to change SO Line delivery detail
Qty to equal qty
status to status to
detailed & closes
"Backordered" backorder
Move Order line

Figure 1.0: Backorder Flow

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 In the Physical flow of the backorder process, material may or may not exist. In the case
where the material does not exist, the backorder process is used to identify inventory
discrepancies. For example the system allocates the complete requested quantity at Pick
Release based on availability. When the picker physically accesses the picking location,
the quantity available to pick is less than the quantity the system determined as available.
The shipper enters the actual quantity available in the shipped quantity field. The result
of the Ship Confirm action is as follows:

The line is split into two lines. One line will indicate the entered quantity as shipped
quantity and have a pick status of shipped and the other line will indicate the unshipped
quantity with a status of Backordered.

Another case is when the material being shipped is available and material is being
backordered for specific business reasons. For example all available material has been
allocated to a specific customer when you find out additional supply for other orders will
be delayed. Another customer will have a down production line situation if some of the
allocated material doesn’t get to them right away. A decision could be made to ship a
partial quantity to one customer and backorder enough quantity to accommodate the
down line situation. At the ship confirmation step, the user enters a partial ship quantity
for the material. At Ship Confirmation the line is split into two lines. One with a status of
Shipped for the entered quantity’s and one with a status of Backordered for the
unshipped lines.

The physical material for the backordered material systematically resides in the staging
location. A manual sub-inventory transfer is required if the desired location of the
backordered material is another location.

Pick Release could be run again for the down line customer and the system will allocate
the material that was previously allocated to the backordered lines to the down line
customer.

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Transaction Flow for Backorders

User selects action "Confirm" and presses

button Go.

Can Deliveries be
Show Errors
confirmed?

Ship Confirm dialog opens.

User sets options and
presses OK or Cancel

Unassign lines if their released_status are

NOT IN ('Y')

Unassign lines with status 'X' or 'Y' if they do

not have required inventory controls

Update Quantities

Split and unassign Staged

Quantities: make a list of
staged lines

call Backorder API for lines with backordered

quantities > 0
in each delivery

Completey For each delivery,

Fully Staged Error
Backordered what is its case?

Shipped

If no leg, autocreate generate if specified and trip

Delete its Legs
Trip Pack Slip number autocreated, close Drop
off Stop,

update Delivery's status if specified, submit

to Confirmed Report Set if specified, autocreate
deliveries for the list of
staged lines
If specified and trip if specified and trip
autocreated, generate autocreated, close Pick
BOL number up Stop,

Backorders in Release 11i Transaction Flow for Backorders 9

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Scenario 1: Shortage at Detailing
A Sales Order line for 10 units of item A is booked and released. Only 7 units exist in
inventory. The order is allocated, pick confirmed and ship confirmed.

Post Detailing

During allocation, 7 units are found. INV updated shipping with the results of the detail.
Auto backorder split the delivery line and called OM to split the sales order line. WSH
then reduced the requested quantity on the move order line. The data after detailing
appears as follows:

Sales Order Lines

Line Qty
1 7
1.1 3
Delivery Lines
Line SO Line Qty MO Line Staged Qty Status Subinventory
100 1 7 1000 0 Released
101 1.1 3 Backorder
Move Order Lines
Line Req. Qty Detailed Qty Delivered Qty
1000 10 7 7 0
Move Order Line Details (MMTT)
Line MO Line Qty From Loc To Loc
10000 1000 7 Stores Stage

Pick Confirm
The user pick confirms the 7 units. Because the move order line was changed at detailing, the
move order line is closed at pick confirm even though all 10 units were not found. The data
appears as follows

Sales Order Lines

Line Qty
1 7
1.1 3
Delivery Lines
Line SO Line Qty MO Line Staged Qty Status Subinventory
100 1 7 1000 7 Staged Stage
101 1.1 3 0 Backorder

Move Order Lines

Line Req. Qty Detailed Qty Complete Qty
1000 7 7 7
Move Order Line Details (MMTT)
Line MO Line Qty From Loc To Loc
10000 1000 7 Stores Stage

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 Ship Confirm
The user now ship confirms the 7 units.

Sales Order Lines

Line Qty
1 7
1.1 3
Delivery Lines
Line SO Line Qty MO Line Staged Qty Status Subinventory
100 1 7 1000 Shipped
101 1.1 3 Backorder
Move Order Lines
Line Req. Qty Detailed Qty Complete Qty
1000 7 7 7
Move Order Line Details (MMTT)
Line MO Line Qty From Loc To Loc
10000 1000 7 Stores Stage

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Scenario 2: Shortage Reported at Pick Confirm
A Sales Order line for 10 units of item A is booked and released. 7 units are found during detailing
but at pick confirmation the user reports a missing quantity of 1 and can only pick confirm 6 units
for the order. The process flow appears as follows

Post Detailing
Allocation completes successfully and all 10 units are found.

Sales Order Lines

Line Qty
1 10
Delivery Lines
Line SO Line Qty MO Line Staged Qty Status Subinventory
100 1 10 1000 0 Released
Move Order Lines
Line Req. Qty Detailed Qty Delivered Qty
1000 10 10 0

Move Order Line Details (MMTT)

Line MO Line Qty From Loc To Loc
10000 1000 10 Stores Stage

Pick Confirm
The user was instructed to find 10 units but could only find 7. A missing quantity is reported,
when the user asked the system to redetail the balance, the system could not find more quantity of
the item (the results would be the same if the user had not prompted the system to find the
balance). The data appears as follows:

Sales Order Lines

Line Qty
1 7
1.1 3
Delivery Lines
Line SO Line Qty MO Line Staged Qty Status Subinventory
100 1 7 1000 7 Staged Stage
101 1.1 3 0 Backorder

Move Order Lines

Line Req. Qty Detailed Qty Complete Qty
1000 10 7 10 7 10 7
Move Order Line Details (MMTT)
Line MO Line Qty From Loc To Loc
10000 1000 10 7 Stores Stage

Ship Confirm
The user now ship confirms the 7 units that was available to ship in the staging location. The data
appears as follows:

Backorders in Release 11i Scenario 2: Shortage Reported at Pick Confirm 12

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Sales Order Lines
Line Qty
1 7
1.1 3
Delivery Lines
Line SO Line Qty MO Line Staged Qty Status Subinventory
100 1 7 1000 Shipped
101 1.1 3 Backorder
Move Order Lines
Line Req. Qty Detailed Qty Complete Qty
1000 7 7 7
Move Order Line Details (MMTT)
Line MO Line Qty From Loc To Loc
10000 1000 7 Stores Stage

Backorders in Release 11i Scenario 2: Shortage Reported at Pick Confirm 13

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Backorders and Cycle Counting

The ability to identify and remedy inventory discrepancies as part of the picking and
shipping process has recently been made available through patch 1672188 & 1970002
for Shipping Execution.

Prior to this addition, if the user identified a material shortage while picking and
shipping delivery lines, his only option was to backorder the discrepant quantity and alert
inventory control personnel to make an inventory adjustment for the material shortage. If
this manual alert was not made, the enterprise ran the risk of having unavailable material
allocated again at the next pick release process until someone synchronized the physical
inventory with the system inventory. The cycle count action in the shipping transaction
form provides a mechanism for the user to split the line, one line representing the actual
shippable quantity and another line representing the quantity that is backordered. At the
same time the reservation is transferred to cycle count so the inventory will not be
available at the next pick release process.

The process to send a reservation to cycle count and backorder lines that were released
as a result of discrepant inventory is as follows.

Within the Shipping Transaction Form:

1) Select a line with a pick status of staged.

2) Select Cycle Count from the action menu and click on go.

3) A window very similar to the Split Line window comes up. In the figure below the
delivery 33276 has a delivery detail 57552 with an ordered quantity of 20.

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 4) If you enter a quantity less than 20 ( say 7 ), the delivery detail will split as 13
Staged, and 7 Backordered as shown in the figure below .

5) If you enter a quantity of 20, the delivery will get completely backordered.

In both cases the reservation for the quantity that you see backordered, gets
transferred to cycle count. This can be verified from the inventory Supply/Demand
form.

There are two other ways to transfer backordered quantities to cycle count.

1) There is a radio button titled Cycle Count All under the Ship Options in the
Confirm Delivery dialog box. By selecting this at ship confirm, the reservations
for all lines in the delivery will be transferred to cycle count and the entire
delivery will be backordered.

2) In the unspecified quantities drop down box there is a Cycle Count selection. By
choosing cycle count from here, any line that does not have a shipped quantity
specified will be backordered and the reservation transferred to cycle count.

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Backorders and Over picking

After pick-confirm step, the Picked Quantity should always be greater or equal to the Requested
Quantity.

If not enough quantity was picked, the delivery line will be split at Pick Confirm. The delivery line
will be updated to Staged with the Picked Quantity and a new backordered delivery line will be
created.

If a delivery line is fulfilled by the Picked Quantity and there is a Pending Quantity, a new delivery
line Pending Over pick will be created.

When either one of the Picked Quantity or the Pending Quantity is null the following rule is used to
handle delivery lines:

• Backorder the delivery line if its Picked Quantity is null and the Requested Quantity is
greater than zero.
• Delete the delivery line if its Requested Quantity is null and the Picked Quantity is
greater than zero.

Backorders in Release 11i Backorders and Over picking 16

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