Learn the best practice for handling backorders in commonsku.
A backorder is an order that cannot be filled due to low inventory. Sometimes, a product is on backorder, and other times, only select product variants are on backorder.
There can be different hand-offs when processing a backorder, depending on your team's size and dynamics. The steps below describe the hand-offs for a team with designated sales, production, and invoicing reps. However, teams of any size can follow the same guidelines.
On this page:
Step 1 - Update the PO and tag accounting
Typically, the production rep is responsible to:
- When a backorder is recognized, change the POs status to Problem or Follow Up
- Open the project and tag the order rep and invoicing rep with detailed notes on what needs to be invoiced
- Pin the note to the project's overview
- Change the sales order's status to Ready to be Invoiced
Step 2 - Create a partial invoice and update the sales order's status
Step 3 - Create a second invoice once the order is complete
From there, the production rep will:
- Update the PO's stage to Ready for Billing when the remaining products are ready (this will automatically update the sales order status to Ready to be Invoiced)
- Open the project and tag the order rep and invoicing rep to let them know the order is ready to be invoiced
Next, the accounting rep can:
In addition to the process listed above, you can keep tabs on your backorders by:
- Using a custom Next Action Type to identify backorders POs
- Using order tags to track backorders in your Sales Rep Report
commonsku Tip - As noted in the steps above, it's crucial to tag the invoicing rep(s) when a backorder is recognized and again when the final invoice can be created. Especially because Partically invoiced orders do not appear in the Operations > Client Invoicing Reports.