Backorder tracking in QuickBooks Desktop helps businesses manage orders for out-of-stock items by using Sales Orders to track unfulfilled quantities. This system ensures accurate inventory records and improves customer communication by showing backordered items on invoices and packing slips. Here's what you need to know:
- What is a Backorder? When a customer orders an item that’s out of stock, it’s recorded as a backorder and fulfilled later.
- Why Track Backorders? It prevents revenue loss, keeps inventory accurate, and provides clear updates to customers about pending shipments.
- How to Set It Up? Enable Sales Orders in specific QuickBooks Desktop editions (like Premier Wholesale & Manufacturing or Enterprise), then customize templates to display backorder details.
- Managing Backorders: Use Sales Orders to record customer requests, update quantities shipped via invoices, and track pending items using reports.
- Improved Tracking: Tools like Rapid Inventory integrate with QuickBooks to automate processes, add barcode scanning, and manage multi-location inventory.
QuickBooks simplifies backorder tracking but may require additional tools like Rapid Inventory for advanced workflows and real-time inventory updates.
Setting Up Backorder Tracking in QuickBooks Desktop
Turning On Sales Orders for Backorder Tracking
First, make sure you're using the correct version of QuickBooks Desktop - specifically Premier Wholesale & Manufacturing, Retail, or Enterprise. You can confirm this by checking the title bar for your edition. If needed, switch editions by navigating to File > Toggle to Another Edition. As qbteachmt, a Level 15 QuickBooks expert, explains:
Only Premier Wholesale & Manufacturing and Retail manage backorder tracking; you should see this as the Program Title for what you are running.
Once you've confirmed your edition, the Sales Orders feature will be ready to use. Sales Orders are non-posting transactions, meaning they record customer orders but don’t impact your financial reports until you convert them into invoices. When you create an invoice from a Sales Order and fill in only the quantity you're shipping in the "Invoiced" column, QuickBooks automatically calculates the backordered quantity.
With Sales Orders active, you'll need to adjust your templates to display backorder statuses.
Customizing Templates to Show Backorders
By default, the "Backordered" column is hidden on templates. To make backorder details visible on Sales Orders, Invoices, and Packing Slips, you'll need to enable this column.
Here’s how to add the backorder column:
- Open a Sales Order and go to the Formatting tab.
- Click Manage Templates, select your active template, and choose Additional Customization.
- Under the Columns tab, find the Backordered row and check the boxes for Screen and Print.
- Save your changes by clicking OK.
Repeat these steps for your Invoice and Packing Slip templates to ensure both your warehouse team and customers can see backorder information.
If the backorder column doesn’t appear in a convenient spot on your forms, use the Layout Designer within the customization window to move it to your preferred location. Keep in mind that the backorder column will only show data after you've created a partial invoice from a Sales Order. It won’t display any backorder details on the original Sales Order itself. With these adjustments, you'll be set up for smooth backorder tracking, which will be explored further in the next section.
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Managing Backorders in QuickBooks
Creating Backorders Using Sales Orders
In QuickBooks Desktop, a backorder refers to the portion of a Sales Order that hasn’t yet been fulfilled. To set this up, start by creating a Sales Order for the full quantity your customer has requested. Sales Orders don’t affect financial reports until they’re converted into invoices, making them a great tool for tracking orders.
When you’re ready to ship part of the order, open the Sales Order and click Create Invoice at the top. Select the option to "Create invoice for all of the sales order(s)" and press OK. In the invoice, update the Invoiced column with the quantity you’re shipping. As Trish_T from the QuickBooks Team explains:
"QuickBooks Desktop enables you to [show backordered items] seamlessly... Enter the Quantity of items you're shipping in the Invoiced column. The Backorder column will automatically update."
One thing to note: if an item is fully backordered (none of it is shipped), that line may not appear on the invoice. QuickBooks typically displays only the lines for items that are partially or fully shipped. After processing the initial shipment, you can manage the remaining backordered items by following the next steps.
Processing Partial Shipments
When additional stock becomes available to ship, locate the customer’s open Sales Order in the Customer Center. Open the Sales Order, click Create Invoice, and enter the quantity you’re shipping. The Backorder column will automatically adjust to reflect the updated status. This ensures that your records stay accurate, showing both fulfilled and pending quantities. The Sales Order will remain open until all items are invoiced or you manually close the order.
To keep customers informed, use the Message field on your invoice or packing slip to provide updates about the expected shipping dates for the remaining items. Additionally, make sure your Packing Slip template includes the "Backordered" column, so your warehouse team and customers can clearly see which items are still pending.
Running Backorder Reports
Tracking backorders is just as important as processing them. To view all outstanding backorders, go to Reports > Sales > Open Sales Orders by Item. Customize this report to include the "Backordered" column, which will show the quantities that haven’t been shipped yet.
For a deeper dive into your backorder data, you can create a Custom Transaction Detail report. Filter the report to show only "Non-posting" transactions and set the Transaction Type to "Sales Order." Add columns for Backordered and Quantity to get a clearer picture of outstanding orders. This report can also help you identify missed sales opportunities caused by inventory shortages. If you notice backordered items that are actually in stock, it’s often a sign that the Sales Orders haven’t been properly converted into invoices.
QuickBooks - Back Orders 2017
Using Rapid Inventory for Better Backorder Tracking
QuickBooks Desktop vs Rapid Inventory: Backorder Tracking Features Comparison
What Rapid Inventory Adds to Backorder Management
QuickBooks Desktop provides a solid foundation for tracking backorders through Sales Orders, but Rapid Inventory takes it a step further. It automates processes like partial shipments and multi-location inventory management, cutting down on errors and improving accuracy. With real-time synchronization of sales orders, inventory actions, and item tracking, the need for manual data entry or spreadsheets is eliminated. This reduces the risk of inaccurate stock counts - a common headache for businesses.
Rapid Inventory also introduces mobile barcode scanning for receiving and picking. This feature minimizes mispicks and ensures backordered items are correctly identified during both receipt and shipping. As Fernanda C., Director of Operations, shares:
Easy, reliable, and equipped with effective barcode scanning and mobile picking.
For businesses operating across multiple warehouses, the platform provides a centralized view of inventory - even down to specific bin locations. This makes it easier to fulfill backorders from the most convenient site. Additionally, it supports FIFO (First In, First Out) and FEFO (First Expired, First Out) picking strategies, complete with lot number and expiration date tracking. This is especially useful for managing backorders involving perishable or serialized products.
These features integrate seamlessly with QuickBooks, enhancing its functionality and making inventory and backorder management far more efficient.
| Feature | QuickBooks Desktop (Standard) | Rapid Inventory Integration |
|---|---|---|
| Sync Type | Manual/Batch | Automatic 2-Way Sync |
| Scanning | Limited/Basic | Mobile Barcode Scanning (Receiving/Picking/Counting) |
| Locations | Basic Site Tracking | Multi-Warehouse & Bin/Location Tracking |
| Fulfillment | Manual Backorder Tracking | Automated Backorder & Partial Ship Workflows |
| Access | Local/Hosted Desktop | Web-Based (Access Anywhere) |
Connecting Rapid Inventory with QuickBooks Desktop
Integrating Rapid Inventory with QuickBooks Desktop is a straightforward process that uses the QuickBooks Web Connector. This integration typically takes about a week, covering steps like data preparation, field mapping, and secure configuration. Once connected, the system not only streamlines data syncing but also improves backorder tracking and inventory visibility. Rapid Inventory’s 7-day "Go Live" plan ensures a smooth transition, starting with a demo and discovery on Day 1 and culminating in full integration and team training by Days 6–7.
Before getting started, make sure inventory tracking is enabled in QuickBooks Desktop and that your data is properly reviewed. Once the connection is live, using mobile scanning and real-time syncing for regular cycle counts can boost inventory accuracy to around 97%. Nicholas G., a business owner, highlights the platform’s impact:
Rapid Inventory with QuickBooks Desktop is exactly what we need to run our company. We've been using it for 6 years and love it. Simple and straightforward, very easy to learn and easy to work with.
The platform is also compatible with hosted QuickBooks solutions like Rightworks (formerly Right Networks), Visory, and Swizznet. Pricing starts at $90 per user per month for the Pro plan, which includes unlimited warehouses, full barcode functionality, and white-glove onboarding. For larger teams of 10 or more users, the Unlimited plan costs $900 per month and offers custom inventory reports and a dedicated account manager.
Fixing Common Backorder Tracking Problems
Fixing Data Sync Problems
Data sync issues often occur when transactions like invoices, bills, or inventory adjustments are created directly in QuickBooks instead of through Rapid Inventory. While the QuickBooks Web Connector enables two-way syncing, problems can arise due to mapping mismatches, inactive items, invalid characters in data fields, or API connectivity issues.
To address these issues, start by checking the sync preferences in Rapid Inventory’s Edit Advanced Settings. If the Auto-Adjust QuickBooks option is turned on, Rapid Inventory will automatically post adjustments to fix discrepancies. If it’s not enabled, you’ll need to manually reconcile differences using the Reconcile Quantity page. Reviewing the reconciliation history (found under Inventory > Reconcile > History) helps pinpoint which items failed to sync and when.
For further investigation, run an Audit Trail report in QuickBooks. Filter the report by transaction type (e.g., Invoice, Sales Receipt, or Bill) and by the "Entered/Modified" date, focusing on entries made 14–30 days before the reconciliation date. If you find transactions created outside of Rapid Inventory, you can either delete those entries in QuickBooks or manually adjust the inventory in Rapid Inventory to ensure both systems match. If data corruption is suspected, use QuickBooks’ Verify/Rebuild tool (located under File > Utilities) to identify and fix issues.
Once sync problems are resolved, it’s time to ensure the backordered columns display properly.
Fixing Backordered Column Display Issues
After addressing sync discrepancies, make sure backorder columns are configured correctly. If the Backordered column isn’t visible on sales orders, invoices, or packing slips, it’s likely hidden in the template settings. To fix this:
- Open the transaction.
- Go to the Formatting tab and select Manage Templates.
- Choose your template and click Additional Customization.
- Under the Columns tab, check the boxes for both Screen and Print next to "Backordered."
For the Open Sales Orders by Item report, navigate to Reports > Sales > Open Sales Orders by Item, then click Customize Report. In the Display tab, ensure the "Backordered" checkbox is selected. Keep in mind that invoices will only show backordered quantities if an item is partially shipped. Fully backordered lines without any shipments won’t appear on the invoice. Additionally, backorder quantities will only update automatically if the invoice is linked to the original sales order using the Create Invoice button.
Here’s a quick summary of common backorder tracking problems and fixes:
| Problem | Likely Cause | Recommended Fix |
|---|---|---|
| Backordered column is blank | Template settings | Enable "Backordered" in Additional Customization |
| Column missing from reports | Default settings | Customize the report to add the "Backordered" column |
| Sync errors with Rapid Inventory | Mapping/API failure | Review sync logs and check for inactive items |
| Ghost backorder quantities | Data corruption | Run QuickBooks' Verify/Rebuild Data utilities |
Conclusion
Keeping track of backorders in QuickBooks Desktop is crucial for protecting your revenue and keeping customers informed. By using Sales Orders to handle unfulfilled items, you can maintain accurate inventory counts and avoid duplicate entries that could throw off your "Available Qty" calculations. As QuickBooks Desktop user gbody shared: "I was shocked and appalled [by] how much money was lost due to insufficient inventory". Leveraging detailed reports and customizing templates provides the insights needed to make better purchasing decisions.
While QuickBooks Desktop does a good job with basic inventory management, it has its shortcomings - especially when entire line items on backorder fail to show up on invoices. These limitations highlight the need for a more advanced solution. Rapid Inventory steps in to fill the gap with features like two-way QuickBooks synchronization, multi-location tracking, and tailored backorder workflows. This tool offers real-time updates on pending shipments and helps ensure inventory accuracy.
FAQs
Can QuickBooks Desktop show fully backordered items on an invoice?
QuickBooks Desktop doesn't directly show fully backordered items on invoices. Instead, invoices generally display partially shipped items or those pending shipment. To get a detailed look at backorders, you can customize specific reports within the software.
How do I stop “ghost” backorders from showing in QuickBooks reports?
To avoid "ghost" backorders showing up in your QuickBooks reports, it's important to set up custom reports such as "Open Sales Orders" or "Unfulfilled Backorders". These reports should exclude any orders that have already been closed or fulfilled.
Make sure to manage your sales orders carefully by marking only those that are still open or pending as backorders. By applying filters and customizing your reports, you can focus solely on active, unfulfilled backorders, keeping your data clean and free of ghost entries.
When should I add Rapid Inventory for backorder tracking?
If you're looking to streamline and improve your inventory management within QuickBooks Desktop, Rapid Inventory could be the solution you need. It’s designed to handle more complex inventory challenges, like managing backorders, overseeing multiple warehouses, and creating detailed reports for unfulfilled sales orders.
Here’s what makes Rapid Inventory stand out:
- Multi-location tracking: Keep tabs on inventory across multiple warehouses with ease.
- Barcode scanning: Speed up processes and reduce errors with barcode integration.
- Real-time inventory reports: Access up-to-the-minute data to make informed decisions.
- Advanced workflows: Features like cycle counting and backorder tracking help automate tasks and improve visibility.
By adding Rapid Inventory, you can go beyond the capabilities of QuickBooks Desktop alone, giving you the tools to automate processes and gain better insight into your inventory.
