Inventory - Backorders - MYOB doesn't work

[The_Doc]

Hi Folks

I am hoping that someone with deep knowledge of the limits of the inventory system in MYOB can give me some ideas - without forcing a retooling upon my client - which is a no-goer.

Just some thoughts and ideas on worka arounds.

Client runs numerous live web cards running off a live MYOB file - via an integrator that I have built using the MYOB API system - it works.

A new site due to go live has a more complicated end process - it builds products from components inventoried in the live MYOB file - it will work - the integrator feeds a costant inventory (unlimited) to the website and realtime accurate, up to date pricing.

The problem is when a product is built on the website and through some fancy web coding it works out the dynamic price and the component breakdown. 

i.e Sold Product A - $1540 incl  - which goes back to MYOB as an order ( for accounting)

But a breakdown of parts also goes back and depending on stock - if ANY component is not in stock or short stocked then the entire order is backordered and theoretically and order is placed back to MYOB.

And here is the problem.

Stock levels 

Item 1 = 4

Item 2 = 5

Item 3 = 5

Order A - needs item 1 - 5 units, Item 2 - 5 units, item 3 - 5 units - however there is only 4 units of Item 1 in stock so this whole order goes on backorder

Order B - an hour later, a day later but after Order A orders

Product A - also - or Product B - $ 1030 incl

And the part breakdown = 

item 1 = 3 units, item 2 - 3 units , item 3 - 3 units and hence can jump the queue!!!!!! the problem

We DO NOT WANT THIS TO HAPPEN.

No matter what the imperative 

Order A must be completed before Order B - MYOB cannot handle this - just cannot.

So if we store 

Order A - but do not transmit it to MYOB - just checks inventory ( and sends a backorder through for 1 unit of Item 1) and we wait for this to be filled

If Order B comes in off the web - we need to backorder item 1 = 3, item 2 = 3 and item 3 = 3 ( but it cannot jump the queue - Order A must be completed).

Notwithstanding an order in the system ( not from the web can snap up all of Item 1 = 4 whilst waiting for the backorder).

My point is (without retooling) can we monitor the inventory through the API - yes - easy - already doing this) and we simply keep Orders from the web queued until all precding are filled - and at the end of each day we give a report to say - back logged orders require this amoun t of stock - we can only fill the following with current stock.

The need is to watch backorders are enough for the queued Orders and current other outside demand.

I do not see another way of doing this??

Any one got any ideas.

The Doc

[Princess_R]

Hi @The_Doc 

Thank you for your post.

At the moment this is our inventory system works. I would suggest try different system, which ever suits your business you can follow the process. But we appreciate and valued your suggestion/feedback, we'll relay this to the relevant team.

Cheers,

Princess

[brunob]

Hi @The_Doc ,

Thank you for your post. Can I get some additional information on why you do not want the system to fulfil the next order if it can? 

How is the decision made on which order to build/dispatch? And what is the process when a work order cannot be built/dispatched? Do you display stock on the website? What is the customer's expectation when an order is placed? 

Depending on the fulfilment logic of the business, you could sync availability (vs stock on hand) to the website. This way orders could be queued when availability is = or <0. Once an order with the supplier is created and receipted in the system, availability would increase again and the remainder orders could be fulfilled. 

Hope that helps as an idea.

Regards,

Bruno

[The_Doc]

Hi @brunob 

Thanks for the reply.

The website is a rebuild of an old webcart that builds a product from components in stock - way too complex to use MYOB build.

The old website is losing money as pricing is not dynamic and a number of other reason.

Simply - the new website builds a product security doors - windows from measurements and add-ons provided by tradies.

i.e. 1800 x 1200   security window with stainless mesh, this security lock, this colour etc. - very complex build.

The components that make up the build are not displayed - just the product build.

The new web ( goes live 1 Jul) - with a complex build matrix in its code - selects the MYOB items from inventory (perpetual inventory and we don't feed qty into the picture - we didn't want qty as a factor in the build). The pricing for the build is dynamic and up to date.

The price for the build is shown - and the build price is paid for on the web.

My software integrates the web to MYOB - it takes the order and posts a sales (order) for just the product to the clients account ( or if not account - guest csutomer) as an order 

Order A -   1 x Product X ( 1800 x 1200  ...... ) @ $1831 incl

The build components come in from an order table that breaks the build into current MYOB items 

2 x item 1

1.4  x item 2

5 x item 3 

Order B comes in an hour later

1 x Product X (1200 x 1200)

1 x item 1

1.0  x item 2

3 x item 3 

If I now do an update of current items stock levels and find item 3 has only 3 items in stock then (keeping this order together)  - it gets posted as an Order ( an invoice will be spat back by the API as 'insufficient stock')

It was decided by management ( and occurs on the old web that Orders for builds must run in order of received).

At present there is a staff member who reviews stock levels each day and orders and fills orders in time-order

However, Order B comes in a day later - and if we aren't worried about progressing orders in time sequence it will be able to go into production taking the current available stock of item 3 - ( we back-ordered 2 of item 3 for that order but now because Order B has now taken the rest of item 3 - another back-order has to be sent and Order A gets forced further back in the queue).

So management said - Orders must be done in time sequence - no product order can jump the queue - noting they don't run their stock at such a low level as to have a stop/start/stop process going on.

Since my post we have decided to add some more code to my integrator and Orders will be posted as follows.

Order A comes in 

2 x item 1

1.4  x item 2

5 x item 3 

It will be split - and items in stock will be grabbed by Order A will an invoice post.

Item 3 (will be split  - 3 x item 3 - on the invoice thereby nailing this stock and preventing queue jumping) .

A backorder will be sent through for Order A of 2 x item 3.

Order B comes in 

1 x Product X (1200 x 1200)

1 x item 1

1.0  x item 2

3 x item 3 

Now - there are no Item 3 in stock - so All of Order Bs item 3 goes on a backorder and there is no queue jumping.

However, so that management no longer wants to pay for a staff member to monitor orders in time sequence - my software will look at all Backroders in MYOB - and try and fill them in time sequence - at 10 PM every night or thereafter.

So it downloads BackOrder Order A - 2 x item 3 - and checks if enough stock - there are now 3 instock - so it completes Order A - 1st then moves on to see if the next order's backorder can be completed.

No we do not want to run quantity into the web - we have 2 other web carts and do so in another webcart - so I have the code to do this but the web cart then becomes way to complex if it starts maanging Orders/BackOrders - it was decided not to.

The initial desing didn't even have dynamic pricing - it was designed with static pricing - I convinced themm dynamic was possible - and it has this.

Complex - not really - it is just that MYOB just doesn't have the granularity of ORders to prevent queue jumping.

The Doc