Zoho Inventory

Help Docs


A backorder is an order you place with your supplier for items you have committed for sale but cannot fulfill immediately. In Zoho Inventory, a backorder is basically a purchase order raised from a sales order whenever the items are out of stock or committed to other transactions. You can either receive the backordered items in your warehouse and then fulfil pending orders, or have the supplier deliver them to your customers directly like a dropshipment.

The percentage of items backordered and the number of backorder days are important measures of the quality of a company’s customer service and the effectiveness of its inventory management.

Creating a Backorder

Screenshot of creating a new Sales Order

Screenshot of a Sales Order

NOTE: Backorders can be created for online Sales Orders too. The above step does not apply for Sales Orders fetched automatically from marketplaces. In those cases, the Sales Order will already be available.

Sending/Confirming a Sales Order

Show SO with alert message. Also, highlight alert and the more->backorder step too

Backorder dialog box

Note: When the Sales Orders are in the On Hold status, you will not be able to raise any packages or invoices from the Sales Orders. However, you can raise the invoices and packages either before creating a backorder, or when the backorder process is fulfilled.

Note: The TCS will be calculated on the total amount including all charges and taxes.

Insight: The new TCS rates will be applicable only on the amount received after 1 October 2020. You will be required to collect TCS only if your turnover had exceeded Rs 10 crore in the last financial year and the sale of goods to a customer exceeds Rs 50 lakh in the current financial year.

purchase order page, highlight send and mark as issued option

bill create 1

bill create 2

NOTE: When you open a backordered Sales Order, you will be able to see the Purchase Order associated with it.

Sales Order Screenshot

Creating a Backorder for Multiple Sales Orders

You can also create a single backorder for multiple Sales Orders at once. To do so,

Bulk Backorder Step 1

Bulk Backorder Step 2

Bulk Backorder Step 3