Partial Delivery
A partial delivery is the shipment of only part of the ordered quantity of a customer order; the remaining line items or quantities are delivered later as a back order.
A partial delivery is the shipment of only part of a customer order, while the remaining line items or residual quantities follow at a later date. Instead of holding back the entire order until every item is available, the portion that can be shipped immediately leaves the warehouse right away, and the remainder is recorded as an open item and delivered later.
Partial deliveries typically arise when an order contains several items that are not all in stock at the same time, or when a large order quantity is shipped in multiple tranches. In the ERP system, the original order is not closed; it remains open with a residual quantity until all line items have been delivered in full.
At a glance
- Only part of the order quantity is delivered; the rest follows later.
- The customer order stays open with a residual quantity.
- Each partial delivery generates its own delivery note and goods issue.
- Enables faster delivery capability despite partial unavailability.
- Legally permitted only with the customer’s consent or as agreed.
How a partial delivery works
The starting point is a customer order with one or more line items. If the order cannot be fulfilled in full, for example because an item is not in stock in sufficient quantity, the sales rep decides to ship the available portion in advance. A delivery note is created for the quantity actually shipped and the goods issue is posted; stock is reduced accordingly. The quantity not yet delivered remains as an open remainder on the order.
As soon as the missing items become available, after goods receipt from a procurement or production run, the next tranche is picked and shipped as a further partial delivery or as a final remaining delivery. Only when the sum of all partial deliveries equals the order quantity is the order considered fully fulfilled.
Delivery note and goods issue per tranche
Each physical shipment is documented by its own delivery note, which lists exactly the items and quantities contained in that tranche. The associated goods issue posts the stock out and forms the basis for shipping and later invoicing. Multiple delivery notes for a single order are the norm with partial deliveries.
Invoicing: per delivery or consolidated
There are two approaches to invoicing: either each partial delivery is invoiced individually right away, or all partial deliveries of an order are combined into a single consolidated invoice at the end. Which approach is chosen depends on the agreement with the customer and the processes in the company.
Why partial deliveries matter
Partial deliveries increase delivery capability and shorten the perceived lead time: the customer receives the available portion immediately instead of waiting for the entire order. Especially in B2B, where customers urgently need individual items for their own production or resale, this is a tangible service advantage that strengthens customer loyalty.
From a business perspective, partial deliveries reduce tied-up capital and accelerate cash flow, because goods that have already been delivered can be invoiced and paid for promptly. At the same time, they smooth out picking and shipping peaks and relieve the warehouse when stock is tight. The price for this is higher process costs: multiple shipments, additional packaging, and greater administrative effort per order.
Whether a partial delivery makes economic sense therefore depends on weighing the service gain against the additional costs. For high-value or urgently needed items, the service advantage prevails; for low-value small parts, it may be cheaper to bundle the order and deliver it in full. Many companies define fixed thresholds for this, such as minimum values or minimum quantities per shipment.
Partial delivery in the ERP system
An ERP system manages partial deliveries automatically via the open order backlog. For each order line item it tracks the ordered, the already delivered, and the still open quantity, and automatically allocates the available quantity for shipment. Through the availability check (available-to-promise), the system recognizes which part can be shipped immediately and proposes a partial delivery.
Any number of delivery notes with reduced quantities can be generated from the order; the system automatically carries the residual quantity forward and prevents over-delivery. This keeps order processing traceable, and reporting as well as dunning draw on the same consistent data.
Control via order parameters
In many systems, you can specify per customer, order, or line item whether partial deliveries are permitted at all. A customer may insist on complete delivery, in which case the ERP holds back the order until all line items are available. Conversely, minimum delivery quantity rules can prevent uneconomically small tranches from being shipped. Systems such as xentral, weclapp, or JTL map such rules as standard.
Legal aspects in the DACH region
In Germany, under Section 266 of the German Civil Code (BGB), the creditor is generally not obliged to accept a partial performance. A seller may therefore not simply make a partial delivery if the customer can expect a complete delivery. Partial delivery becomes permissible through an express or implied agreement, for example via the general terms and conditions, in which partial deliveries are agreed to be reasonable. In B2B trade this is widespread and usually unproblematic; in B2C, terms-and-conditions clauses must be interpreted more narrowly.
In practice, shipping costs and deadlines are also relevant: anyone making partial deliveries should clearly stipulate that the customer incurs no additional shipping costs from multiple shipments, and communicate the delivery deadlines for the residual quantity transparently. For VAT, the tax generally arises with the respective delivery, so a correct allocation of delivery note and invoice per tranche is important.
Example
Practical example: partial delivery in B2B wholesale
A technical wholesaler receives an order from an industrial customer for 50 electric motors and 200 cable sets. The cable sets are fully in stock, but only 30 of the motors are. The customer urgently needs the available parts for an ongoing assembly.
The wholesaler ships the 200 cable sets and 30 motors immediately as a partial delivery, documented via a delivery note and the posted goods issue. The 20 missing motors remain as an open residual quantity on the order. Two weeks later, after goods receipt from the supplier, the back order with the remaining 20 motors ships out. Only then does the ERP create a consolidated invoice for the entire order, and the customer order is closed.
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