Guideline

GL-OM-09 · Cancellations & Liabilities

Scope

Scope: Covers the end-to-end management of order cancellations, shipment shortfalls, liability assessment, customer DC check results, and related claim and recovery activities.

Purpose: Ensures cancellations and shipment shortfalls are accurately recorded, promptly communicated, and appropriately followed up, including any associated liability and recovery actions.

Owner: DMR owns and coordinates the Cancellations & Liabilities process, with PMR responsible for CRM updates, required notifications, liability follow-up, and claim and recovery activities.

Applies to: Applies to PMR working on Production Processes within Order Management.

Requirements

1. R1 — PMR — Record cancellations in CRM with the correct reason code

2. R2 — PMR — Send an email in the event of a cancellation or the quantity falling below the shipment tolerance, to the BU Head and CEO within 24 hours (customer, manufacturer, quantity, PO value, Sales Order (SO) value, cancellation reason, liability)

   • If any liability is involved, include the liability details in the e-mail.
   • Required details: customer, vendor, quantity, PO value, Sales Order (SO) value, cancellation reason and liability.

3. R3 — PMR — Follow up the customer DC check results

4. R4 — PMR — Follow up the claim and recovery processes

Used in

• SOP-OM-19 Shipment
• SOP-OM-20 Customer Complaint Management

Generated automatically from the guidelines each SOP lists.

Tutorial

This training video supports the Cancellations & Liabilities process. It does not replace the numbered steps.

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Exam

Exam for the Cancellations & Liabilities process. Take it after you finish the process article, including the tutorial video.

Pass mark	Expected duration	Attempts
80%	About 10 minutes	1 (one attempt per person)

Pass mark 80%. 10 single-choice questions, one point each.

Your name and score are recorded and count towards the leaderboard. You have one attempt, so finish the article and the tutorial before you start.

Locked

Watch the tutorial video above to 100% to unlock the exam. The questions appear here once your progress is complete.

Changelog

Changelog

Date	Changed by	What changed
2026-10-12	Order Management	R2: SO value spelled out as Sales Order value.
2026-10-12	Order Management	Training video added and exam published.
2026-09-30	Order Management	Converted from process to guideline (GL-OM-09).
2026-09-15	Order Management	Added related process references.
2026-09-11	Order Management	Article Added