Handling backorders, which happen when demand from consumers outstrips stock levels, is a typical issue for companies. Odoo 18 Inventory offers effective backorder management solutions, facilitating a seamless order fulfillment experience.
A backorder in Odoo 18 is an order for products or services that cannot be fulfilled immediately due to insufficient inventory or other logistical challenges. The system automatically generates a backorder when a customer requests a product that is either out of stock or not available in the required quantity. In Odoo 18, the Inventory module provides robust management capabilities for backorders, facilitating effective oversight of inventory levels and order processing. This module systematically tracks orders that are delayed due to stock shortages, generating backorders to ensure that you are promptly informed of any unmet customer requirements.
The Odoo 18 Inventory module provides users with the flexibility to select the backorder generation method that aligns with their specific needs. Users have the option to determine whether backorders should be created automatically or not. This feature is applicable to various operation types, such as delivery orders, receipts, returns, and manufacturing processes.
Imagine a case where a customer requests ten widgets, but only five are available in inventory. Odoo 18 allows users to seamlessly set up an automatic backorder for the five widgets that are out of stock, providing a streamlined and customizable solution for managing inventory deficits. This capability enables businesses to modify their backorder management strategies in line with customer expectations and operational demands, catering to various business scenarios.
Now, let's explore the importance of backorders concerning the Picking Policy. In Odoo 18 Inventory, there are two distinct selection methods. The first option allows for backorders, enabling the shipment of items as they become available. The second option is to send all items together in one shipment. You can find the "Picking Policy" setting within the "Settings" menu of the Inventory module in Odoo 18.
When you select "Ship all products at once," it means that the shipment will be processed only after all ordered items are available. On the flip side, opting for "Ship products as soon as available, With backorders" allows you to send out the items that are currently in stock while also giving you the option to place backorders for any items that are not yet available.
Navigate to the Configuration section and select the Operation Types. A list will appear showing Operation Types, Warehouse, Reference Sequence, and Company. From this list, pick the "Delivery Orders".
The operation type is established as delivery. Additionally, various parameters such as Sequence Reference, Sequence Prefix, Warehouse, Barcode, Reservation Method, Lots/Serial Numbers, Locations, Company, Returns Type, and Create Backorder can be meticulously configured.
Three options for managing backorders are available within Operation Types.
- Ask: Customers have the option to backorder any items that are still in stock..
- Always: For any items that remain unfulfilled, the system will automatically generate a backorder..
- Never: No backorder is generated, and the surplus products are automatically canceled.
Let's explore each of these options. In this instance, we opt to "Inquire" about backorders.
Let's say we only have five (5) quantities of the product "Water Bottle" in store, but the customer needs 10 quantities. In this case, you will be prompted to create backorders for the remaining quantity when a pop-up notification appears.
For that, check the Onhand quantities of the product Water Bottle.
Let's proceed to create a new sales order. The customer, Deco Addict, has requested 12 units of the "Water Bottle" product. After that, confirm the quotation and access the Delivery smart tab.
From the delivery, it's clear that the demanded quantities are 12, but the "Reserved quantities" are 5. Click on the Validate button next.
Upon clicking the "Validate" button to finalize the delivery, a pop-up window will be displayed on the screen, as shown below.
Users have a choice between two options: they can either cancel the remaining quantities by clicking the "No Backorder" button, or they can proceed to create a backorder for the items that are still pending. To initiate the backorder process for these items, simply click the "Create Backorder" button.
Subsequently, the available stock will be automatically shipped to the customers.
While checking the sale order, the delivered quantities are 5. The smart tab Delivery shows 2 transfers there.
The user can start a fresh transfer for the remaining quantities inside the same sales order by clicking the "Create Backorder" button. This recently created transfer has the status "Waiting."
This backorder is easily recognizable as it is associated with a specific transfer, featuring a distinct reference to the original transfer.
The sales order's Delivery Status is currently categorized as "Partially Delivered" in the Other Info tab. Upon updating the inventory for the product, the status of the transfer will transition to Ready, as demonstrated in the accompanying screenshot below.
Please proceed with the transfer and verify the delivery.
The user will choose "Always" as the backorder method in the operation types in the following demonstration.
When you choose the "Always" setting in Odoo 18, backorders for any remaining product quantities will be created automatically, without requiring any pop-up notifications.
Then again update the onhand quantity of the same product as 5. Then create a sale order again. This time, as in the previous case, the same customer Deco Addicts requested 12 quantities. Confirm the order and open the Delivery.
From the image above, it's clear that we have only five units available, while the demand stands at 12. Once the transfer is confirmed, Odoo 18 will automatically create a backorder without displaying any popup notifications.
In the Other Info tab of the sales order, you will find the Delivery Status, which is currently marked as Partially Delivered.
While checking the sale order, as same as the previous case, two delivery transfers are created. One is the created Back order, and it is in the Waiting stage.
Let's now examine the results of choosing "Never" as the backorder strategy. If "Never" is selected, the remaining amounts will be canceled without a backorder being created.
Out of 12 pieces, stock only has five of the goods here. So the delivery shows that the Demand is 12 but the only 5 quantities are reserved here. Validate the delivery.
Once the transfer is validated, the available funds will be allocated to the correct customer, and any surplus quantities will be canceled.
Let's review the sales order once more. The quantities shown are 12, but only 5 have been delivered. Additionally, there is just one delivery transfer recorded.
Click on the Other Info tab of the sales order. Under delivery, the users can view the Delivery Status. You can notice that the order has been Fully Delivered when you check its delivery status.
Odoo 18 Inventory simplifies backorder management, transforming a potential challenge into an opportunity to enhance customer satisfaction and operational efficiency. By leveraging the functionalities of Odoo 18, businesses can create a dynamic and adaptable supply chain that meets the demands of today's rapidly evolving market.