Backorder Type is an important parameter used in determining the course of action if the stock of an item is insufficient to deal with a customer order. The hard-coded types are:
Order Now will mark the item for immediate ordering on a supplier or to the factory, as the case may be. If the Stock Type of the item is Manufactured, a Manufacturing Order (MO) will be generated. Otherwise, a Purchase Order (PO) will be generated on the default supplier for that item. All goods received against such MO/PO will be reserved (automatically allocated) to this order so that such items may not be supplied to fulfill any other orders.
Future Stock will cause the order to be booked for the entire requirements with the intention of delivering the item when the stock becomes available. There are no reservations here. As and when stock is available, it is up to the discretion of the fulfillment teams as to which orders get fulfilled when.
None will ignore all requirements beyond the available quantity and only the available quantity will be fulfilled.
Customer Preferences
Backorder Type may be selected item by item at the time of entering an order. However, when no such option is available or the user do not choose an option, it will pick up the default specified in the Customer Master. When an order entry facility comprises a Customer tab, this default could be overridden by changing the option in the Customer tab. This, however, has no effect on other orders or on Customer Master and is only applicable to that particular order.