NetSuite Order Management: OMS Features (2026)

NetSuite order management: harder than it looks, easier with the right setup

Taking an order, shipping it, and collecting payment sounds simple. In reality, mid-market companies deal with orders from multiple channels (web, EDI, phone, marketplace), inventory across multiple locations, complex allocation rules, split shipments, backorders, returns, and payment terms that vary by customer. The order management process touches sales, warehouse, finance, and customer service — and when it breaks, everyone feels it.

TL;DR: NetSuite handles order management through a native order-to-cash flow (Sales Order, Item Fulfillment, Invoice, Payment) that covers most mid-market needs. For companies with 3+ fulfillment locations or multi-channel routing requirements, the Advanced Order Management (AOM) module adds intelligent order routing, store fulfillment, and priority-based allocation rules.

NetSuite handles order management through its native order-to-cash workflow and, for more complex scenarios, through the Advanced Order Management module. This guide covers both.

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The standard order-to-cash flow

NetSuite's native order management follows a straightforward document flow:

Sales Order → Item Fulfillment → Invoice → Customer Payment

Sales orders

The sales order captures what the customer wants: items, quantities, pricing, shipping address, payment terms, and delivery date. Sales orders can be entered manually, created from quotes or opportunities, generated from EDI transactions, or imported from ecommerce platforms.

Pricing applies automatically based on price levels, quantity discounts, and customer-specific pricing. Promotional discounts and coupons apply at the line or order level.

Inventory commitment reserves available inventory for the order. When a sales order is saved, the ordered quantities allocate against available stock. If inventory is insufficient, the system can backorder, partially fulfill, or alert the sales team.

Credit checking evaluates the customer's credit status before the order progresses. If the order would exceed the customer's credit limit, it holds for credit review. The credit manager approves or declines, and the order continues or holds.

Item fulfillment

When the warehouse picks, packs, and ships the order, an item fulfillment record documents what was shipped, the shipping method, tracking number, and actual ship date.

Partial fulfillment handles orders that can't ship complete. Ship what's available now, backorder the rest. Each partial shipment creates a separate fulfillment record linked to the original sales order.

Multi-location fulfillment ships items from different warehouses. A single order might fulfill from the East Coast warehouse and the West Coast warehouse depending on item availability and customer proximity.

Invoicing

Invoices generate from fulfillments. Bill what you shipped, not what was ordered. For partially fulfilled orders, the invoice covers only the shipped items; remaining items invoice when they ship.

Billing schedules handle orders that invoice on a schedule rather than on shipment. Monthly billing, milestone billing, or percentage-of-completion billing for services and projects.

Payment application

Customer payments apply against open invoices. For simple transactions, payment arrives and applies to the corresponding invoice. For customers with multiple open invoices, payment application rules determine which invoices get paid first (oldest first, specific invoice match, or manual application).

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Advanced Order Management

NetSuite's Advanced Order Management (AOM) module adds capabilities for companies with complex multi-channel fulfillment requirements.

Intelligent order routing

AOM routes orders to the optimal fulfillment location based on configurable rules. Instead of manually deciding which warehouse fulfills each order, the system evaluates:

• Inventory availability — which location has the items in stock?
• Proximity to customer — which location minimizes shipping cost and transit time?
• Fulfillment capacity — which location has available picking/packing capacity?
• Cost optimization — which routing minimizes total fulfillment cost?

For companies with 3+ fulfillment locations, intelligent routing reduces shipping costs and improves delivery speed without manual intervention.

Store fulfillment (ship-from-store)

Retail companies can fulfill online orders from store inventory. AOM evaluates store inventory alongside warehouse inventory when routing orders. This turns retail locations into micro-fulfillment centers, increasing inventory availability for online orders.

Multi-channel order consolidation

Orders from your website, marketplaces (Amazon, eBay), EDI partners, and manual entry all flow into the same fulfillment pipeline. AOM normalizes orders from different sources into a consistent format for fulfillment.

Allocation rules

When inventory is limited, allocation rules determine which orders get priority. High-value customers, time-sensitive orders, or specific channels can be prioritized over others. Pre-defined allocation waves process orders in priority sequence.

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Returns and RMA processing

Return merchandise authorizations (RMAs) handle the reverse logistics flow. A customer requests a return, the RMA authorizes it, the customer ships the product back, and the return is processed.

RMA creation documents what's being returned, the reason, and the expected resolution (refund, replacement, or credit). NetSuite can create RMAs from the original sales order, pulling the item and pricing details automatically.

Item receipt (return) records the physical return of goods. The warehouse receives the returned items, inspects them, and determines disposition: return to inventory (if sellable), quarantine for inspection, or scrap.

Credit memo or replacement completes the process. A credit memo issues the refund or store credit. A replacement order ships the new item. The RMA tracks the full cycle from authorization to resolution.

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Key reports

Order backlog shows open sales orders by expected ship date, providing the fulfillment team's workload view and sales leadership's revenue pipeline.

Fulfillment performance tracks on-time shipment rates, pick accuracy, and average fulfillment time. These metrics identify operational bottlenecks.

Order-to-cash cycle time measures how long from order entry to payment collection. Longer cycles indicate process inefficiencies or collection issues.

Return rate analysis by product, customer, and reason code reveals quality issues, expectation mismatches, or sizing problems that need attention.

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The bottom line

NetSuite's native order-to-cash handles most mid-market order management needs without additional modules. Advanced Order Management is worth the investment when multi-location fulfillment routing, store fulfillment, or complex allocation rules become operational requirements.

The key to good order management isn't the technology — it's the process discipline. Clean item data, accurate inventory counts, defined fulfillment procedures, and consistent returns handling matter more than any module feature.

Frequently Asked Questions

What is the order-to-cash process in NetSuite?expand_more

What is NetSuite Advanced Order Management (AOM)?expand_more

How does NetSuite handle backorders and partial fulfillment?expand_more

How does NetSuite handle returns and RMAs?expand_more

Can NetSuite manage orders from multiple sales channels?expand_more