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How to Split a Purchase Order Based on Backorder Sales Between Warehouses?

Sophia avatar
Written by Sophia
Updated over 3 weeks ago

This guide shows you how to divide a single purchase order's inventory based on backorder sales between multiple warehouse locations using Split Purchase Order feature.

Note: This feature is currently in beta access and available to selected companies. Contact us via chat to request access.

What you'll learn

  • How to split PO based on backorder sales

  • How to fine-tune quantities after initial distribution

  • What happens to your original purchase order after splitting

Step-by-step instructions

Step 0: Access the Split feature

  1. Open the purchase order (PO) you want to split

  2. Locate and click the "Split purchase order" button in the top-right corner of the PO details page

Note: Currently only Draft and Approved POs can be split.

Note: Backorder should be activated for splitting PO based on backorder sales.

Step 1: Select your splitting method

  1. In the split workflow modal, select "Split Between Locations"

  2. This option allows you to distribute inventory across multiple warehouses

Step 1.1: Choose destination locations

  1. Select two or more warehouses from your location list

  2. Each selected location will appear with a checkmark

Step 1.2: Choose the Based on Backorder Sales Distribution Method

  1. Under "Quantity Distribution Method" choose "Based on Backorder Sales" from the dropdown

  2. Click "Continue to Step 2" to proceed

Step 2: Allocate Quantities

  1. Review the automatically calculated quantities for each product across your selected locations

  2. You can modify these numbers by clicking directly in the quantity fields

  3. The sum of quantities across all locations must equal the original PO total (shown in the right column)

  4. If quantities don't balance correctly, a red exclamation mark will appear with validation errors

  5. Click "Continue to Step 3" when quantities are properly distributed

Step 3: Choose what happens to the original PO

  1. Select one of these options for the original purchase order:

  • Change Status To Draft: Keeps the PO in your system but removes it from inventory calculations

  • Archive PO: Preserves the PO for record-keeping and disables any linked backorders

  • Delete PO: Permanently removes the PO (if deletion isn't possible, it will be archived automatically)

2. Review all your selections carefully

3. Click "Confirm Split" to finalize the process

Step 4: View your new purchase orders

After successful splitting:

  1. A confirmation message will appear showing that the split was completed

  2. You'll see the newly created purchase orders with:

    • Their unique PO numbers

    • Destination locations

    • Total quantities

    • Expected arrival dates

  3. You'll also see the status of your original PO (draft, archived, or deleted)

  4. Click the view next to any new PO to view its details.

Tracking split purchase orders

The relationship between the original PO and the resulting split POs is automatically recorded in the activities log. You'll see entries indicating:

  • Which PO was split

  • Which new POs were created from the split

  • The action taken on the original PO

This tracking makes it easy to trace the history of each order in your inventory system.

How Splitting Works Based on Backorder Sales

We analyze historical backorder fulfillment data to distribute your inventory where it's most needed:

The Distribution Logic

  1. Backorder Fulfillment Ratio: The system calculates how many times each product has been fulfilled from each of your selected warehouse locations.

  2. Proportional Distribution: Products are distributed proportionally based on these fulfillment ratios.
    Example:

    • If SKU-1 has been fulfilled 25 times from Berlin and 20 times from Siena:

    • Total fulfillments = 45

    • Berlin receives ~56% of the inventory (25/45)

    • Siena receives ~44% of the inventory (20/45)

  3. Equal Distribution Fallback: If a product has no fulfillment history across your selected locations, the system will distribute it equally between warehouses.

  4. Rounding Logic: When calculating proportional distributions, rounding ensures the sum of distributed quantities exactly matches your original PO quantity.

  5. Manual Adjustment: After automatic distribution, you can still manually adjust quantities to account for other factors like warehouse capacity or local promotions.

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