This is used when you need to edit the remanining amount on order for a part that has been partially received.
In the parts tab of the purchase order below, you can see I ordered 100 and received 50. To be able to adjust or remove the remainder (maybe I am only going to get 90 instead of the original 100 I ordered), I will click on the line and choose split backorder. this will prompt you to split the line to a new entry, where you can then adjust as needed.
Clicking yes will move the part to two lines, one will show 50 as received and the other will show 50 on order. You can then edit, delete, etc the line that is on order as needed.

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