The following list outlines the differences between Internal versus External Stock and Backorder Control:

Internal Control   External Control
Under Internal Stock Control, Backorder and Ship quantities are set by OE30 (Enter Orders & Quotes) when the order is entered based upon quantity available at the time of entry.

 

   Under External Stock Control, Ship quantity is always set equal to the Order quantity.  Backorder quantity is always set to zero.

 
All quantities are printed on the picking slip and the pickers are typically instructed to pick what is in the Ship column, even if stock is on the shelf and the pick slip has a Backorder quantity set.  (That stock may be allocated to another order.)

 

  

Pickers are instructed to ship what they can based on what they find on the shelf.  The Ship quantity is either checked off or hand written if less is shipped than ordered.

 
If stock quantities are accurate, minimal changes to the Backorder/Ship quantities are expected at time of invoicing (but changes are allowed).

 

   The Backorder/Ship quantities are adjusted at time of invoicing.  More adjustments are expected under External stock control than under Internal control.

 
Under Internal Backorder Control, if backorders exist upon invoicing, the invoicing cycle retains record of the backorder but no paper work (picking slip) is printed at this time.  The picking slip is created when there is some shippable stock for that order.

 

   Under External Backorder Control, if backorders exist upon invoicing, the invoicing cycle still retains record of the backorder (i.e. the B/O Qty remains set) but a reference is written back to OE32 (Schedule Orders for Printing).  The next time orders are scheduled/printed, a Backorder Picking Slip is printed.  This document is filed and manually controlled externally.

 
When stock is received, backorders are released by running program OE61 (Release Backorders).  This program reads the backorder file and if stock is now available it resets the order’s Backorder/Ship quantities and a reference is written back to OE32.  The next time orders are scheduled/printed, a Backorder Picking Slip is printed.  It is critical that stock receipts are processed ASAP; otherwise backorders are held in the system (unless released manually by recalling the backorder and changing the Backorder/Ship quantities). Note: When Order Management is running, OM30 executes OE61 and OM33 executes OE32. If Order Management is not in use, OM33 can also be used to schedule Orders (OE32).   When stock is received, it is up to someone to review the backorders, pull the paperwork and submit for picking.  This is not dependant upon the stock having actually been received in the system. Program OE61 is not used to release backorders in an External environment. OE51 with Restriction 4-B/O Products Received can be used as a guide to know which Backorder Picking Slips should be pulled and submitted to the warehouse for picking.

Under Either Method:

  • Backorders by Product can be reviewed/printed on demand.

  • Backorders can be forced out of the system by recalling the order and manually setting the Backorder/Ship quantities. This temporarily forces the quantity on hand to negative until the receipt is processed.

  • Purchasing decisions are not affected. When to reorder stock is based upon Quantity Available, which is identical under either method.

Allowable Combinations:

Stock Control:

Backorder Control:

Comment:
External External Allowed only when Lot or Serial Number controls are not in use and when Order Managment is not is not being utilized.
Internal Internal Allowed with no restrictions.

 
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