An open order is a request that has been received but not yet shipped. These records simultaneously represent three things: a customer expectation, an inventory commitment, and a future collection.
Because it affects all three, having open orders remain invisible is costly. Customers call, inventory is misplanned, and cash flow forecasts go off track.
In this article, we explained how to set up open order tracking, why aging is necessary, and the rules for closure.
Table of Contents
Why should it be tracked?
The most common sentence heard in businesses without open order tracking is: "The customer called, what happened to their order?"
Every time this question is asked, someone has to investigate. The warehouse is asked, the salesperson is asked, and emails are scanned. A five-minute answer takes half an hour.
The second cost is forgotten orders. An order waiting because inventory hasn't arrived might not be shipped even when the inventory arrives; no one remembers.
The third cost is planning errors. If open orders are not visible, the same inventory is sold twice.
How to set up an open order list?
The list forms naturally when the document chain is established. The order line closes as it is shipped; the remaining quantity appears as open.
If there is no chain, the list is kept manually and does not stay up to date. We explained this structure in the sales document chain article.
Columns that should be in the list: order date, customer, product, ordered quantity, shipped quantity, remaining quantity, and promised due date.
Filter and saved view support speed things up. A view like "This week's due dates" reduces daily checks to thirty seconds; list filters see the article.
Aging: which is the oldest?
Aging groups orders by their waiting time, such as less than a week, one to four weeks, or more than a month.
This grouping simplifies prioritization. An order waiting for a month should be handled before an order received yesterday.
Aging is also an indicator of quality. If the number of long-waiting orders increases, there is a bottleneck on the supply or production side.
The same logic is used in receivables tracking; receivables aging you can check the article.
Why do orders remain open?
Out of stock. The most common reason. If a critical level had been defined, this order wouldn't be waiting; critical stock level see the article.
Customer request. The customer requested a future delivery date. This is not a problem, it is a planned situation and should be marked separately.
Credit limit. The customer's balance is over the limit and shipment is on hold. This situation needs to be visible to the sales team.
Pending approval. Orders with high discounts or special conditions might be stuck in approval.
Forgotten. It has been shipped but not closed in the system. This is a data quality issue and requires regular cleanup.
Closing rules
The open order list must be kept clean. When records that are not truly pending remain on the list, the list loses its reliability.
A tolerance can be defined for small balances. If two units are shipped short from an order of one hundred units, the remaining quantity can be closed automatically.
When a customer cancels, the order must be canceled; not closed, canceled. The two situations are evaluated separately in reporting.
Who can close an order must be defined. Closing may mean the sale is not recorded; authorization limits this authority.
Impact on stock and cash plan
Open orders are an input to inventory planning. Even if on-hand stock seems sufficient, it may fall short when open orders are deducted.
Therefore, the "available stock" calculation must be made by subtracting open orders from the on-hand quantity. The figure seen by the field team should also be this.
On the cash flow side, open orders indicate expected collection. Delivery dates are the basis of the cash flow forecast; see the cash flow tracking article.
Open orders are tracked in the sales module; critical delays are conveyed via notifications to the relevant person.
Informing the customer
Open order tracking has another invisible dimension: customer communication. Notifying in advance that an order will be delayed creates far fewer problems than letting the delay happen silently. Customers get angry at being left in the dark, not at the delay.
For this, orders approaching the delivery date but not yet shipped must appear in a separate list. This list forms the sales team's weekly calling agenda. A proactive phone call prevents a subsequent complaint.
A new delivery date must be given during the notification. Saying "it will be delayed a bit" magnifies the uncertainty; giving a concrete date allows the customer to make their own plan. The newly provided delivery date must also be entered into the system, otherwise a second delay will again go unnoticed.
In businesses operating through a dealer channel, this communication can also be conducted via a portal. When the dealer can see the status of their own order, the number of calls decreases significantly; we discussed this channel in the dealer network management article.
It is also useful to record every conversation with the customer. The answer to the question of who promised what and when should reside in the history on the customer card; you can check the customer 360 view article.
Weekly review routine
An open order list is useless unless it is reviewed. Therefore, tying the list to a weekly routine is much more valuable than a one-time setup. A regular twenty-minute review is enough for most businesses.
Three groups are looked at during the meeting. The first is orders due this week; preparation is checked for these. The second is overdue orders; the reason and a new date are determined for these.
The third group consists of long-pending records with unknown reasons. Some of these are actually closed orders that were not closed in the system; cleaning them up increases the reliability of the list.
At the end of the routine, a responsible person and a next step must be determined for each row. A delay without a person in charge will remain the same on the same list next week.
Over time, the output of this routine turns into a performance indicator: the average order closing time. If the duration is getting longer, it means a bottleneck has started on the supply or production side; reporting side makes this trend visible.
Frequently asked questions
Does the open order reserve stock?
It depends on the setup. If reservation is used, the same goods cannot be sold to a second customer.
Can the customer see their own order?
It is possible through the B2B portal; B2B order portal check the article. The dealer interface is at an early stage.
Are there open orders on the purchasing side as well?
Yes, the same logic applies; purchasing order process you can check the article.
Do marketplace orders also appear on the list?
Yes, when channel integration is established; marketplace integration check the article.
The open order list is the list of promises made by the business. When kept up to date, both customer communication and planning are noticeably eased.
By speaking with the EQLEM teamyou can set up your open order tracking.