Introducing Backorder Processing in SAP S/4HANA

Objective

After completing this lesson, you will be able to outline backorder processing in SAP S/4HANA

Backorder Processing in SAP S/4HANA

Backorder Processing

In this lesson, you will learn about backorder processing. You will learn which elements comprise backorder processing and how you can set up backorder processing. In addition, you will become familiar with the various parameters for controlling backorder processing so that you will be able to adjust it to suit your requirements once you have completed this lesson.

Outline Backorder Processing in SAP S/4HANA graph showing Quantity of stock and sales orders over a four day time period.

Backorder processing is an availability check tool that allows you to diagnose backorders and overwrite the committed quantity that resulted from the last availability check. You can redistribute the confirmed quantity for one or more products to selected customer requirements.

In SAP S/4HANA, you can perform backorder processing in the following ways:

  • Interactively

  • In the background

Both are in the core of SAP S/4HANA.

In addition, advanced Available-to-Promise in SAP S/4HANA offers you three apps for setting up automated backorder processing for sales order items. Each app contains in-app documentation that provides additional information on the on-screen elements and concepts used.

Both the backorder processing in SAP S/4HANA and the backorder processing in the area of advanced Available-to-Promise in SAP S/4HANA will be described in detail.

Backorder Processing (2) – New Demand

Backorder Processing (3) – Shortage Is Fixed

Backorder Processing graph showing Quantity of stock, sales orders and planned orders over a four day time period.

When is backorder processing performed?

This is a typical ATP process that results in the need for backorder processing:

  1. You perform an availability check, for a first customer order with a standard delivery time. Due to the ATP situation, this order can be confirmed accordingly.

  2. Now a second order comes in as a rush order for tomorrow. This order runs in a shortage, because no new receipt elements are found.

  3. This (time depending) shortage situation will persists even then it is possible to create an additional supply a few days later.

  4. You execute backorder processing and reset the confirmation of the order items so that other (as yet unconfirmed) order items can be confirmed.

  5. The changed data can be updated in the SAP S/4HANA system documents.

Backorder Processing (4) – Result

Backorder Processing graph showing Quantity of stock, sales orders and planned orders over a four day time period.

Note

As a prerequisite to execute backorder processing in SAP S/4HANA, advanced Available-to-Promise in SAP S/4HANA must not be activated.

Result Backorder Processing in SAP S/4HANA

Screen samples of the result of back order processing in SAP S/4HANA.

Execute Backorder Processing in SAP S/4HANA