Blocked Orders

What is a blocked order?

A blocked order refers to an order that cannot be processed or fulfilled due to certain issues or restrictions. These issues can include credit hold, inventory shortages, pricing discrepancies, or other factors that prevent the order from progressing through the normal fulfillment process.

4 Ways to identify a blocked order

To identify a blocked order, there are a few steps you can take. 

  1. Check the status of the order in the system. If it is listed as "blocked" or "on hold," then it is likely a blocked order. 
  2. Review any error messages or notifications associated with the order. These may provide more information about why the order is blocked. 
  3. Reach out to the relevant department or team responsible for order processing to inquire about any potential blocks or issues with the order. They should be able to provide further clarification and assistance in resolving the block. 
  4. If all else fails, consult the company's order processing policies or procedures to see if there are any specific criteria that might lead to a blocked order.

5 Reasons why an order can get blocked

There are several reasons why an order may be blocked. Some common reasons include:

  1. Credit hold: The customer's credit limit has been exceeded, or there are outstanding payment issues.
  2. Inventory shortage: The ordered products are currently out of stock or unavailable.
  3. Pricing discrepancies: There may be discrepancies between the quoted price and the actual price listed in the system.
  4. Compliance issues: The order may violate legal or regulatory requirements.
  5. Shipping restrictions: The products may be subject to shipping restrictions or require special handling.

Can theAR automation system automatically unblock orders?

In some cases, an Accounts Receivable automation system can automatically unblock orders. This typically depends on the capabilities and configurations of the specific system being used. Here are a few scenarios where an AR automation system may automatically unblock orders:

  1. Temporary credit hold: If an order was blocked due to a temporary credit hold, the AR automation system can be programmed to automatically unblock the order once the customer's payment is received or their credit issue is resolved. The system can check for updated credit information and release the hold accordingly.
  2. Inventory replenishment: If an order was blocked due to inventory shortages, the AR automation system can be integrated with inventory management systems. Once the inventory is replenished and the availability is updated in the system, the order can be automatically unblocked and processed for fulfillment.
  3. Pricing adjustments: If an order was blocked due to pricing discrepancies, an AR automation system with pricing management capabilities can automatically reconcile the pricing and update the order with the correct pricing information. This can lead to the automatic unblocking of the order.

Can blocked order management be automated?

Blocked order management can be automated, depending on the specific processes and systems in place. Here are some aspects of blocked order management that can be automated:

  1. Detection of blocked orders: Order management systems can be configured to automatically detect and flag blocked orders based on predefined rules or triggers. This automation helps identify blocked orders without manual intervention.
  2. Notification and alerts: Once a blocked order is detected, automated notifications and alerts can be sent to relevant stakeholders, such as customer support, inventory management, or accounts receivable teams. These notifications ensure that the appropriate personnel are promptly informed of the blockage.
  3. Workflow automation: Certain common blockage scenarios can be addressed through predefined workflows or business rules. For example, if an order is blocked due to a credit hold, an automated workflow can initiate the necessary actions, such as sending reminders for payment, releasing the hold upon payment confirmation, or escalating to the credit department for further review.
  4. Self-service resolution: Simple blockage issues can be automated through self-service options for customers. For instance, if an order is blocked due to an address mismatch, customers can be provided with a self-service portal to update their address information, automatically unblocking the order.
  5. Integration with external systems: Integration between the order management system and other enterprise systems, such as inventory management, pricing, or compliance systems, can enable automated checks and updates. For example, if an order is blocked due to inventory shortages, an integrated system can automatically check for alternative stock availability or trigger a purchase order for replenishment.

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HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash. Improve your efficiency with our order-to-cash templates such as - A/R Aging Report, DSO calculation excel template, A/R Dashboard excel template, credit scoring model for new customers, 21 Credit-collections email template, and Our Ebooks.