Post Implementation support for Export billing

[Former Member]

Hello all,

I am facing one scenario where we have doen export of manufacxturing goods for particular customer.

Now requirement is for those billed products if any product is faulty during warranty periond, we need to bring that part back & issue new part to customer(Export location).

If there is any standard process available in SAP which copiles this requirement.

Amit.

[Lakshmipathi]

Dear Amit

As rightly pointed out by jude, bringing back the export products to origin country is a very hectic job and also involves huge expenses. Moreover, if you disclose the facts of the rejectiion value to statutory authorities, then you also need to reimburse the export benefits availed initially while exporting the products. This is not an easy task.

Instead, what normally exporters do (according to my knowledge) is that they will either offer discount to the extent of claim which will be adjusted in the subsequent shipments or raise a credit note stating some other reason to convince the bankers.

In fact, there is also one condition stipulated by Reserve Bank of India that exporters can offer discount to a maximum of 10% on FOB Value which should be declared in invoice. If it is more than that, the exporters should get concurrence from RBI, as to why the benefit is given to the overseas customer.

So you have to check with the exporter what they were following all these years and accordingly you have to decide how this can be addressed in SAP.

thanks

G. Lakshmipathi

[Former Member]

Use the standard return process for this with a subsequent deliver free of charge Order type. It will take care of your requirement. Remember that returns in case of export will involve imports as well and in this case you need to reverse some of the duties as well. If you have availed any DEPB beneft then these also will be involved not to mention an advance licence if its involved. That could make it complex.

In my experience if the situation so demands and if the value is not too much its always worthwhile to scrap it and give the customer an FOC delivery. This would reduce the implications greatly.

regds

Jude