Set up backorder and preorder functionality

Important

Some or all of the functionality noted in this topic is available as part of a preview release. The content and the functionality are subject to change.

This article describes how to set up and manage backorder and preorder functionality in Microsoft Dynamics 365 Intelligent Order Management. Managing backorders and preorders gives you the flexibility to optimize the handling of your inventory.

Backorders

A backorder is an order for a product or service that you can't immediately fulfill because of a lack of available supply. Customers who place an order for an item that isn't currently in stock might be informed that the product is on backorder. They might be told that they can still make a payment in return for a promise of future delivery. Items that are on backorder might indicate a date when they're back in stock.

Effective backorder management provides the following benefits:

Optimized use of inventory
Regular inventory checks to fulfill backorders

How backorder functionality works

When you create an order in Intelligent Order Management, you can run an inventory check as part of either the policy assignment process or the fulfillment and returns optimization process. In both these processes, the system might not find inventory for the ordered product. In this case, the system updates the order line with a Status Reason value of Backorder Hold.

If you enable the available-to-promise (ATP) settings, the system updates the Inventory Availability Date and Estimated Shipment Date values for the product on the backordered lines.

The following illustration shows an example of an order orchestration journey that has a policy-based fulfillment assignment.

Screenshot of an orchestration journey with a policy-based fulfillment assignment.

The example in the following illustration highlights key updates that the system makes to sales order lines when it backorders them. The system updates the order line with a State value of Sale Order Product on Hold and a Status Reason value of Backorder Hold. The system also updates the Estimated Shipment Date and Inventory Availability Date values.

Screenshot of key updates to backordered sales order lines.

After the system backorders a product, it automatically runs a background job that triggers an inventory check, based on the launch date, to determine whether the order lines can move to subsequent fulfillment. From the orchestration, Intelligent Order Management determines whether an inventory check should be triggered independently or through the fulfillment and returns optimization process.

A job log is available where you can view the list of job runs, the status of each, and the number of records that the system successfully processed and moved to fulfillment. To open the job log, on the Home page, in the left navigation, under Monitoring, select Background jobs.

If a background job fails, you can manually run it by using the Run option on the upper toolbar. Select Back-Order Job to start a new instance of the background job.

To view the details of a background job run, select the job line.

Preorders

A preorder is an order that you place for a product before the product is released. The ability to handle preorders gives you more flexibility to handle inventory effectively.

Preorders provide the following benefits:

Manufacturers can gauge how much demand there will be and how large initial production runs should be.
Sellers can be assured of minimum sales. High preorder rates can also be used to further increase sales.
Customers can be guaranteed immediate delivery when products are released.

How preorder functionality works

When you create an order in Intelligent Order Management, if it contains products that are marked as Preorder eligible and that have a launch date, the system updates those lines on the sales order with a Status Reason value of Preorder Hold. The system also updates the lines with the product launch date, as defined in the prerequisite settings.

Screenshot of a sales order line updated with a Preorder Hold status and a launch date.

After a product is preordered, a background job that runs automatically triggers an inventory check, based on the launch date, to determine whether the order lines can move to subsequent fulfillment. From the orchestration, Intelligent Order Management determines whether an inventory check should be triggered independently or through the fulfillment and returns optimization process.

If an inventory check fails, and no inventory is found, the system updates the status of the order lines to Backorder Hold.

A job log is available where you can view the list of job runs, the status of each, and the number of records that were successfully processed and moved to fulfillment. To open the job log, on the Home page, in the left navigation, under Monitoring, select Background Jobs.

If a background job fails, you can manually run it by using the Run option on the upper toolbar. Select Pre-Order Job to start a new instance of the background job.

To view the details of a background job run, select the job line.