Often on platforms, there is a setting for a user to be able to place orders for the products that are Out Of Stock. Such orders are referred to as Back Orders. It is a regular practice for users following the Just In Time order processing methodology. Cin7 Orderhive automatically and accurately calculates the quantities needed in the inventory to fulfill the pending orders.
To Raise Purchase Order for BackOrdered Products:
- Go to the Products tab.
- On the extreme top right, an option Alerts shows how many products are backordered.
- Click on Products are backordered which redirects you to the list of the products that need to be restocked.
- It displays a list with the Product name and SKU, also how much quantity is the product short of. The products are grouped Supplier wise, in case a Supplier is assigned to a product. On the left, it shows the list of suppliers and clicking on each supplier will show the respective products along with the Shortage quantity.
- Select the products for which you want to create a Purchase Order. Click on the Create PO button at the extreme bottom.
- In case there are no suppliers attached to the products, they will fall under the Others category. For such products, while creating the PO, you will get an option to Add a new supplier.
- Select New Purchase Order and click Next.
- Create PO page will be loaded where relevant Supplier - to whom the PO is to be raised will be already selected. Other details like Warehouse - in which it has be received, relevant Currency - as supported by the Supplier and appropriate Payment Term need to be selected from available dropdowns.
- It also shows the list of all the products with the current inventory level and how much is needed to be restocked for the backorders. You can even modify the Quantity to be less or more than the present Inventory level of the Product.
- Click on Raise. Clicking on Save will not remove the entries of the products from the Product Shortage list. Only after a PO is raised, it will clear the pending quantities.
- After clicking on Save, the PO will be displayed in the To Raise section. Or if you click on Raise, the PO will be displayed in the Awaiting Receipt section. The products in the PO can then be received as and when required.
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