Backorder:
In NetSuite we have an option called “Backorder” to place order even if the item is out of stock quantity. We use backorder rules to put items on backorder when there is no inventory at a location.
Backorder rules have the following characteristics:
- They are evaluated only when all other rules have been evaluated and there are lines in the sales order without a fulfillment location.
- They do not check for inventory at locations.
- You typically only need to create one backorder rule in a configuration.
To add a backorder rule, open the automatic location assignment configuration you want to work with and select the Backorder Rules subtab. Select an existing rule or create a new rule, and then save the configuration.
You can track backorders for items not in stock. Integrated item receipts and fulfillments enable you to handle backorders.
You can commit backordered items from items that you receive on purchase orders. After you commit items on backorder, you can process them for fulfillment.
For example, you enter a sales order for 5 quantities of item #XY123. The quantity on hand of item #XY123 is zero, so you end up with 5 backordered items.
When you receive 50 quantities of item #XY123 on a purchase order, you can commit 5 of them to the sales order. Then, you can process the sales order for fulfillment.