Chained Orders are subordinate orders created as a result of the necessity of the parent order to communicate some portion of the order fulfillment execution to a third party.
A tiered order is defined as "Chained" if the subordinate order must finish its fulfillment process before its parent order can be considered fulfilled. For example, an order is placed with an enterprise which, in turn, creates a purchase order with a drop-ship supplier to get the order fulfilled directly to the customer. The orders "chained" to the parent order are responsible for reporting status updates back to the parent order. Any modification made to the parent order after the chained orders are created may be propagated to each chained order.
For chained orders the Seller of the parent order must also be configured as a Buyer.
Essentially, once the decision (either manually or through the scheduling process) has been made to source a particular line from a drop-ship supplier, the line is included in a chained purchase order that, through its independently configured pipeline, can then be fulfilled. The second order that is created through this process is referred to as the chained order.