Partial Receiving and Backorders Without the Mess
Short answer: When a supplier delivers part of an order, the system records what arrived, updates stock for those items, keeps the remainder as an open backorder, and prevents the invoice from being matched until the full quantity is received — or allows a partial invoice match if that is the agreed process.
Why Partial Deliveries Are a Common Problem
Suppliers deliver short for many reasons: production delays, transport capacity, raw material availability. In manufacturing and trading businesses in Malaysia, a partial delivery is not unusual — it is routine.
The problem is that most simple systems expect a binary outcome: either the full order arrived, or nothing did. When 60% of an order arrives:
- Staff are not sure whether to close the PO or leave it open
- Finance does not know whether to pay the invoice in full or hold it
- The warehouse updates stock for what arrived but the remaining 40% disappears from view
- Someone has to chase the supplier for the balance — with no system reminder
These are all solvable problems. They require a system that handles partial receiving as a first-class workflow, not an exception.
How Partial Receiving Works
When a delivery arrives, the warehouse team records a Goods Received Note (GRN) against the relevant PO. In a partial receiving workflow:
- The GRN records only what was physically received — item, quantity, batch, location
- The system compares this to the original PO quantity
- The remaining quantity becomes an open backorder on the same PO
- The PO status updates to "partially received" — not closed
- Stock levels update immediately for the received items
- Finance can match the partial GRN to a partial invoice if the supplier invoices in stages
The PO stays visible as partially received until the final delivery arrives and the backorder is closed.
Backorder Visibility
Backorders are only useful if someone is watching them. The system provides:
| View | What it shows |
|---|---|
| Open backorders by supplier | Which suppliers have outstanding deliveries |
| Backorders overdue | Expected delivery date passed with no receipt |
| Backorder value | Total cost of goods still outstanding |
| Aged backorders | Backorders open more than 14 / 30 / 60 days |
This replaces the spreadsheet that someone maintains manually — and inevitably updates inconsistently.
The AutoCount Connection for Partial Invoices
A supplier may invoice in two parts: one invoice for the first delivery, a second invoice for the balance. AutoCount needs to reflect this accurately without double-counting the liability.
With partial GRNs recorded against the same PO, the invoice matching process — covered in detail in the three-way match workflow — can match each supplier invoice to the corresponding partial GRN. The creditor balance in AutoCount reflects only what has been invoiced for goods actually received.
For broader inventory accuracy, partial receiving data feeds the inventory and warehouse system so stock records match physical reality throughout the partial delivery cycle.
The full procurement process, from PO creation through approval to receiving, is part of procurement and PO automation.
What the Warehouse Team Notices
The warehouse team notices that they no longer have to track a separate list of "what we are still waiting for." They scan or enter what arrived, and the system knows what to expect next. If the balance does not arrive by the expected date, the system flags it without anyone having to remember to check.
FAQ
Can a partial delivery close a PO if the remaining quantity is small enough to write off?
Yes. You can configure a tolerance — for example, if less than 5% of the order quantity remains, the PO can be marked as fully received. This prevents small outstanding quantities from generating indefinite backorders.
What happens if a supplier delivers more than the PO quantity?
Over-receipts are flagged. The system records the actual quantity received and marks the excess for review — typically requiring authorisation before the over-quantity is accepted into stock.
Can staff on the warehouse floor record GRNs on a mobile device?
Yes. The GRN screen is designed to work on a tablet or phone so warehouse staff can record receipts at the point of delivery without returning to a desktop. Jacob Ng's design approach specifically focuses on keeping interfaces simple for frontline and migrant workers.
Dealing with incomplete deliveries and lost backorders? WhatsApp us to see how partial receiving works in your operation.