What is backorder processing in SAP PP-MRP - Material Requirements Planning?

SAP Term: backorder processing

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The materials for which there are missing quantities can be processed, with the backorder processing function. In this process, you can commit requirements up to the amount of the current ATP quantity or you can re-allocate quantities that have been committed.

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• Key Concepts: 
  Backorder processing is a feature of SAP's Material Requirements Planning (MRP) component. It allows users to manage and process orders that cannot be fulfilled due to a lack of available inventory. This feature helps users to keep track of customer orders and prioritize them based on their importance. 
  
  How to use it: 
  Backorder processing can be used in SAP's MRP component by setting up a backorder list. This list will contain all the orders that cannot be fulfilled due to a lack of available inventory. The user can then prioritize these orders based on their importance and process them accordingly. 
  
  Tips & Tricks: 
  When setting up the backorder list, it is important to consider the customer's needs and prioritize accordingly. It is also important to keep track of the inventory levels so that orders can be fulfilled as soon as possible. 
  
  Related Information: 
  Backorder processing is closely related to inventory management, as it helps users to keep track of their inventory levels and prioritize customer orders accordingly. It is also related to order fulfillment, as it helps users to ensure that customer orders are fulfilled in a timely manner.