How do I calculate the order backlog report?
In order to calculate the Order Backlog Report, it is important to understand the concept of a sales backlog. A sales backlog is when a company takes orders but does not fulfill them yet. This is common in growing businesses and indicates a high demand for a product. Additionally, task backlogs in other areas of the business can also cause a sales backlog. A healthy sales backlog suggests that the product or service is in demand.
The formula to calculate the Order Backlog Report is Backlog = Orders - Fulfillment
, where Orders are the number of orders taken and Fulfillment is the number of orders fulfilled. To calculate the backlog, simply subtract the number of orders fulfilled from the number of orders taken.
Using a spreadsheet software such as Sourcetable can help you keep track of orders and fulfillments, so that you can easily calculate the sales backlog in real-time.