E9.2 Set up of a process to restrict backorders using Sales Orders in JDE

[marinescu]

Hi,

This is the first time when I have to set up a process of restricting Sales Orders backorders.
From a business perspective, I usually advise against - pros and cons, my opinion.

I knew what you are supposed to set up (1 or 2 older posts from here that I didn't want to resurrect).
Also checked Oracle's document 2873670.1, see below.

Doc ID 2873670.1 from My Oracle Support with the question „Can the system be setup so that only line items that have quantity can be entered, never creating a backorder:

-Uncheck the Backorders Allowed flag in any of the following places: Item Master (P4101), Item Branch/Plant (P41026), Branch/Plant Constants (P41001) or Customer Billing Instructions (P03013).
- Make sure that Availability Checking is checkedin both the Item Master (P4101) and Item Branch/Plant (P41026) programs.
- Finally set Processing Option # 1 on theCommitment tab behind Sales Order Entry (P4210) to '1' which will check availability backorder and cancel line.

If there is not enough quantity for the item or customer or branch/plant where backorders are not allowed the line will automatically be cancelled; unless using a W line type.

Lines with workorders will never go on backorder through Sales Order Entry, but Print Pickslip (R42520) will create a backorder on W line types if hard committing. If this happens the backorder release programs can be used to release these W line type orders from backorder.

Makes sense, is it not?

Well, in my testing I:

- use a stock item that doesn't have any on-hand quantity in the Branch;
- don't touch YET my current Processing Option # 1 on theCommitment tab behind Sales Order Entry (P4210) set to 2 (2 = Activate, notify, but do not backorder or cancel);
- uncheck the Backorders Allowed flag in P41001, leave the other apps untouched (as long as Oracle says "or"), test;
- uncheck the Backorders Allowed flag in P41026, leave the other apps untouched (as long as Oracle says "or"), test;
Side not, I would never uncheck the flag in P4101, as there are common items used by different BUs.
- uncheck the Backorders Allowed flag in P03013, Billing Instructions, leave the other apps untouched (as long as Oracle says "or"), test.

Basically, whatever I do, I don 't get my line cancelled.

The only time when it works as desired (miracle happens, the line is cancelled in the order entry) is when

- NO MATTER if the flag Backorders Allowed is checked or not in P41001, P41026, P03013;
- BUT I change the nProcessing Option # 1 on theCommitment tab behind Sales Order Entry (P4210) to 1 (1 = Activate, notify, and backorder or cancel).

Can you share your experience - were you ever able to confirm that a set up done according to Doc ID 2873670.1 worked for you?

Thank you for your answer,
Remus

 

[marinescu]

Hi,

Can an Admin delete this post?
It might be that my Internet was playing tricks, so it was posted twice with the same time stamp.

Thank you,
Remus

 

[Craig_Potter]

Hi Remus,
You are covering a couple of topics here...

1) The only time when it works as desired (miracle happens, the line is cancelled in the order entry) is when...
Yes, you have to set processing options on your desired JDE apps to enable the Check Availability logic to kick in and only then will it trigger backorders (and trigger cancellations on those scenarios that do not allow back orders).
Checking Availability is not only processing option controlled (as you have identified), it is also a setting on the Item Master and Item Branch (CKAV field). Bypassing availability checking at this level "trumps" processing option settings. In short, check your processing options and your CKAV values (and then focus on your BackOrders Allowed Y/N values)

2) Lines with workorders will never go on backorder through Sales Order Entry, but Print Pickslip (R42520) will create a backorder on W line types if hard committing. If this happens the backorder release programs can be used to release these W line type orders from backorder.
For W line types, there is a processing option on the Completions program that can be used to "bump" the status to be ready for Picking Slips. This is designed to address your problem with backordering W lines too early (wait for the completion status bump before the Pick Slip). The NEXT issue is typically going to be around the Completion process. e.g. Do you want to Part Ship the W line types as goods are manufactured or wait until the total requirement is manufactured.. but that has not been identified as an issue for you yet, so hopefully picking as u manufacture is fine.

I hope this helps

Regards,
Craig

 

[marinescu]

Hi Craig,

Thank you very much for your answer, it sure helps.

On your point 1, I have done quite some testing and I did get my answer.
I understand the logic as a consultant, but a user would be confused.

On point 2, I was just Copy/pasting from Oracle Doc ID 2873670.1.
Your answer is actually bringing some more light that I can share with my Mfg colleague.

I will post my conclusions in the post (except the W Line Type) at the end of the week or beginning the next.

Kind regards,
Remus

 

[marinescu]

OK, better later.

So, my only intent was to test how the backorder option behaves based on a different mix of setup.
I have left the CKAV box checked everywhere (IM, IB, Processing Options).

I just copy/paste the results of my tests, so anyone can have a look and advise the customer.
After that, I judge the topic as closed from my side.

Test 1:

• P41001 unchanged, the box „Backorders Allowed” is checked.
• P41026 unchanged, the box „Backorders Allowed” is checked.
• P4210 Commitment, Item 1 Activate Availability Checking value = 2 (2 = Activate, notify, but do not backorder or cancel) unchanged
• P03013 – changed; unchecked „Backorders Allowed” in Billing Information

Result: It doesn’t matter if ONLY the „Backorders Allowed” is unchecked at the Customer Master level. The Sales Order Line WILL NOT be cancelled in the Sales Order Entry.

Test 2:

• P41001 – changed; unchecked the box „Backorders Allowed”.
• P41026 unchanged, the box „Backorders Allowed” is checked.
• P4210 tab 5 Commitment, Item 1 Activate Availability Checking value = 2 (2 = Activate, notify, but do not backorder or cancel) unchanged
• P03013 unchanged; the box „Backorders Allowed” in Billing Information is checked.

Result: It doesn’t matter if ONLY the „Backorders Allowed” is unchecked at the B/P Constants level. The Sales Order Line WILL NOT be cancelled in the Sales Order Entry.

Test 3:

• P41001 unchanged, the box „Backorders Allowed” is checked
• P41026 changed, the box „Backorders Allowed” is not checked.
• P4210 tab 5 Commitment, Item 1 Activate Availability Checking value = 2 (2 = Activate, notify, but do not backorder or cancel) unchanged
• P03013 unchanged; the box „Backorders Allowed” in Billing Information is checked.

Result: It doesn’t matter if ONLY the „Backorders Allowed” is unchecked at the Item Branch level. The Sales Order Line WILL NOT be cancelled in the Sales Order Entry.

Test 4:

• P41001 changed, the box „Backorders Allowed” is not checked.
• P41026 changed, the box „Backorders Allowed” is not checked.
• P4210 tab 5 Commitment, Item 1 Activate Availability Checking value = 2 (2 = Activate, notify, but do not backorder or cancel) unchanged
• P03013 changed; the box „Backorders Allowed” in Billing Information is not checked.

Result: It doesn’t matter if the „Backorders Allowed” is unchecked at the B/P Constants, Item Branch and Customer Billing Information level, if the version of P4210 has the setup in tab 5 Commitment, Item 1 Activate Availability Checking value = 2 (2 = Activate, notify, but do not backorder or cancel). The Sales Order Line WILL NOT be cancelled in the Sales Order Entry.

Test 5:

• P41001 changed, the box „Backorders Allowed” is not checked.
• P41026 changed, the box „Backorders Allowed” is not checked.
• P4210_COMIT0007 [Sales Order Manual Entry (S8/S&N)] tab 5 Commitment, Item 1 Activate Availability Checking value = 1 (1 = Activate, notify, and backorder or cancel) – changed
• P03013 changed, the box „Backorders Allowed” in Billing information is not checked.

Result: If the „Backorders Allowed” is unchecked at the B/P Constants, Item Branch and/or Customer/Billing Instructions level, the Sales Order Line WILL BE cancelled in the Sales Order Entry ONLY with the PO changed in P4210 versions - tab 5 Commitment, Item 1 Activate Availability Checking value = 1 (1 = Activate, notify, and backorder or cancel).

It could be confusing for the user at SOE time, if he/she is not checking the availability (there is only a warning about availability – “Order Quantity Exceeds What’s Available”, but the Sales Order can be saved).

Also, after the Sales Order is saved, the Ordered quantity is, i.e., 6 EA, and the Shipped quantity is 3 EA.
I believe it is confusing for a user fresh starting the use of JD Edwards.

But at Ship Confirm [which is also the moment when the On Hand quantity field (SO02) is updated in F4211 and F42199 (from blank to 1) and the Item Ledger (Cardex) record is created in F4111] the original line, i.e., 1.000 will be split in 1.000 with the available quantity 3 EA ship confirmed, and line 1.001 with quantity 3 EA cancelled.

Only after Ship Confirm Quantity Ordered = Quantity Shipped = 3 EA.

It is a hard stop, but effective if this process is desired.
Again, I talk about the user possible confusion, not the way as I understand as a consultant.

Test 6:

• P41001 unchanged, the box „Backorders Allowed” is checked.
• P41026 unchanged, the box „Backorders Allowed” is checked.
• P4210_COMIT0007 [Sales Order Manual Entry (S8/S&N)] tab 5 Commitment, Item 1 Activate Availability Checking value = 1 (1 = Activate, notify, and backorder or cancel) changed
• P03013 unchanged; the box „Backorders Allowed” in Billing Information is checked.

The user can see from the SOE what will happen.
After saving the record, the quantity not available already appears as cancelled from the SOE.

The Ship Confirm will just split the line as per availability and cancel the missing quantity.
Result: It doesn’t matter if the „Backorders Allowed” is checked or unchecked at the B/P Constants, Item Branch and/or Customer/Billing Instructions level, if the rest allow it.

The Sales Order Line WILL BE cancelled in the Sales Order Entry only with the PO changed in P4210 versions - tab 5 Commitment, Item 1 Activate Availability Checking value = 1 (1 = Activate, notify, and backorder or cancel).

Test 7:

• P41001 unchanged, the box „Backorders Allowed” is checked.
• P41026 changed, the box „Backorders Allowed” is not checked.
• P4210_COMIT0007 [Sales Order Manual Entry (S8/S&N)] tab 5 Commitment, Item 1 Activate Availability Checking value = 1 (1 = Activate, notify, and backorder or cancel) changed
• P03013 unchanged; the box „Backorders Allowed” in Billing Information is checked.

As expected, the SO line will be cancelled after saving the Sales Order.

Result: It does matter if the „Backorders Allowed” is unchecked at the Item Branch level, and the rest allow it.

The Sales Order Line WILL BE cancelled in the Sales Order Entry only with the PO changed in P4210 versions - tab 5 Commitment, Item 1 Activate Availability Checking value = 1 (1 = Activate, notify, and backorder or cancel).