Dynamics Community Forum Thread Details

How should we handle these backorders?

I am just looking to see if anyone can think of a good way to handle the below situation. Currently what we do is not working.

In our inventory system we have some items that are kits but we did not set them up as kits (I dont like how kits work) Basically it is a case and the Item number is TSCASE1. With in this case we have 3 other items. We accounted for this by adjusting out the items and and then adjusting in the TSCASE1 into inventory. These cases go with us to Shows. They are supposed to be used for show purposes only but every once in a while someone will want to buy an item out of the case. When this happens and the case comes back to our warehouse I create an order to the customer that bought the item and I just do it as a drop ship to our warehouse to replace the item in the case.

Sometimes we run into a situation where the item I need to invoice the customer for and replace in the case is on backorder. We may not get them in for another month. I do not want to hold off on invoicing the customer because they have the physical item. So I create and invoice and our inventory drops down to -1. Then when we get the item in, our warehouse just has to remember to take one off the shelf and replace it in the case. Of course the warehouse does not like having inventory show as negative. and having to rely on notes or memory. They would rather me put in a backorder with the customers ID and a drop ship to warehouse that way when it comes in, they know to replace the case. If I do that then the customer may not get invoiced for an item they got from us at a show for a maybe a month. So we have brained stormed and these are the only two "ways" we have come up with and neither one is ideal. I thought I would ask here to see if anyone else has an idea. I hope I was clear enough in my explanation.

Katie

Thank you very much for the thorough explanation of the situation!

Since you are using IV transactions to "create" your makeshift kit items you could try doing the opposite.

Place your "kit" into the damaged bucket to denote it's missing an item for the time being. (This is not needed but would make it easy to keep track)
Enter an IV transaction to increase the item quantity for the "component" you sold so you can invoice the customer.
Place your POP order to replace the item and once it comes in remove the "kit" item from the damaged bucket in GP to denote it's usable again.
You would then need to do a decrease inventory adjustment to remove the "component" from on hand.

The downside to this method though is that depending on exactly how you have this setup doing the above may throw out your inventory valuation by the amount of the "component" item until it's received from the vendor and you would want to test it thoroughly before going forward with the above.

Finally you could also remove your "kit" items and instead keep stock of the actual "components" themselves. To prevent them from being sold while they are a part of your kit you could do a IV transfer from On hand to "In use" or "In Service" which will prevent them from being sold however would allow you the flexibility to transfer them to on hand in the event that one is sold out of the kit. This method would prevent the possible side effect of the method I listed above and the route I personally would recommend since it is the most accurate.

Joshua

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