returns

[Former Member]

Dear all,

Based on returns we may raise a credit/debit memo or free of charge subsequent delivery.But in details of RE document the billing type is RE. In which scenario we will raise a retuns order and do PGR and raise RE billing document .pls, let me know.

Thanks.

Regards,

Aditya.

[former_member188076 · Accepted solution]

Hi

There is two process of Return

1) Without Subsequent Delivery Free of charge (Sales Doc. Type RE) and in this case a Credit Note will be created and in the Delivery process (doc. Type LR) you will get a button of PGR (similar to PGI). So the billing document will be raised as RE ( credit Note for return).

2) Return with subsequent Delivery Free of charge ( doc. type SD) in this case there will not be any Billing Doc., as the material is just replaced .

In any case there will not be any scenario for Debit note.

Hope this will clear your doubt.

Regards

Amitesh Anand

[Former Member]

Hi Aditya

If Customer wants to return goods physically for which he has already paid for, then you have to compensate the Customer for the Return.

To compensate the customer, you have got two options,

i. By issuing a Credit Memo for the varified & approved quantities

OR

ii. By sending replacement goods against the return.

Processing "Credit Memo for Return (RE)":

Create a Return Order (RE) either with reference to the Sales order or Billing document (You can also create with out any reference). When you create a Return order, you need to specify an appropriate "Order Reason" (why this complain/Return is taking place).

The Return order contains a Billing block. So, in change mode (VA02), remove "Billing Block" by choosing the blank space from the drop down and save it.

Now, create a "Credit Memo for Return (RE)" with reference to this "Return Order (RE)".

Remember, "Credit for Return (RE)" is always created with reference to the "Return Order (RE)" only in standard SAP and not created from Return Delivery.

Therefore, you can create the "Credit Memo for Return (RE)" before the Return Delivery and PGR.

You can also create after the Return Delivery & PGR, as "Credit for Return" is not dependent on Return Delivery or PGR in standard SAP.

Sending Replacement process:

When you want to send replacement of fresh goods against the return then,

First, you need to create an Order with Order Type "SDF" (Subsequent Delivery Free-of-charge).

SDF is always creted with reference to the "Return Order (RE)" followed by a Delivery (Reference is mandatory).

You can activate a "Delivery Block" in SDF to incorporate an approval step so that Delivery from SDF will be possible only after the approval is done by the authorised person by removing the Delivery Block.

The Order Item Category in SDF is KLN,which not relevant for Billing. So in SDF, after delivery , no Billing is possible.

Hope it is clear.

Regards

[Lakshmipathi]

Wherever there is customer rejections and the manufacturer take back the goods into their plant, you have to create a return order, return delivery referencing this return order and credit note.

thanks

G. Lakshmipathi

[Former Member]

In the case of returns for practical purpose, there may be multiple scenarios, some of which are listed below:

1. The Goods are Physically returned:

Return Sales Order >> Redturn Delivery >> Post Goods Receipt >> Credit Memo for Return (Optional). In the case if materisl is to be replaced Free of Charge Delivery may be done.

2. The Goods are not Physical returned:

Return Sales Order >> Credit Memo for Return (Optional). In the case if materisl is to be replaced Free of Charge Delivery may be done.

Regards,

Rajesh Banka

[Former Member]

Hi

Returns and complaints have 2 scenarios

1.Goods disaptched are returned by customer which are taken back either at depots or factory and kept in Restricted stock.

This normally happens when either by mistake goods with wrong specifications are sent to customer or we have done overdelivery of goods or customer refuses to accept genuinely sent goods for any reason.

In this case flow is Return sales order (RE) -Returns delivery (LR) -PGR - Credit for returns.

also u have to cancel excise invoice in this case as goods are taken abck into factory that will reduce excise laibility.

IF same goods are disaptched again they will have another excise invoice number.

2.Goods are not taken back But credit note for the value of goods will be issues to csutomer

This happens normally when goods are ruined/damaged during transit .Quantity of material rejected is less.

Transportation cost for return is more than disposal .

and if there is discrepancy in invoice value ,price in invoice is more than agreed price .

For all such cases Credit note or Credit memo is issued.

flow is Credit memo request > credit memo.

In this case u can create excise JV for the value of credit note.

the forward sales flow will be the same .

I hope this helps

Regards

Edited by: Mandar Deshpande on Sep 19, 2009 2:25 PM

Edited by: Mandar Deshpande on Sep 19, 2009 2:31 PM