returns (not physical)

[cathy_liang]

Hi experts,

Plz advise whether the solutions are proper. Any risk or back impact?

Case 1:

10pc is delivered while invoice has not been created. However, 2pc is rejected by customer due to quantity problem and not physically returned.

Solution:

step 1. cancel goods issue

step 2. change delivery qty to 8pc, then create invoice

step 3. make 2pc scrapped (MM).

Case 2:

10pc is delivered and invoice has been created. However, 2pc is rejected by customer due to quantity problem and not physically returned.

Solution:

step 1. create returns order

step 2. refer to returns order to create credit memo. No returns delivery.

[Former Member · Accepted solution]

Hi Cathy,

my suggestion is that there are situations were customer returns the physical goods and customer do not.

I such situations we can call as Physical returns processing and logical retuns processing.

Physical Returns scenario we will do post goods Receipt and then issue credit note.

In the logical retuns case we do returns order and credit memo.

At the end of the year when u need to explain what logical returns means to business to your auditors.

Regards

[Lakshmipathi]

Case 1

10pc is delivered while invoice has not been created.

How ?? Is it out of SAP without generating a delivery document ?? If so, it is enough if you post the goods issue only for 8 pcs and bill for the same.

Alternatively, if you have posted the goods issue for 10 pcs, then it is better to generate an invoice also for those 10 pcs and create a return order for 2 pcs and pass credit note for the same.

For Case 2 , what you had indicated is correct.

thanks

G. Lakshmipathi

[cathy_liang]

Hi the experts,

Firs of all, many thanks for all your advice.

However, I still got some questions. Plz help further.

1. For case 1, when cancel goods issue, 10pc will come back (MMBE). Why need MIRO?

2. For case 1, customer don't want invoice 10pc (including the rejected 2pc) or credit memo. Thus, is my solution proper?

3. By case 2, can I summary: difference between physical returns and NON-physical returns is whether to use returns delivery. For physical returns, returns order - returns delivery - credit memo. For NON-physical returns, returns order - credit memo.

By the way, what I have mentioned in the cases is action is made in SAP system. For e.g., 10pc is delivered while invoice has not been created. It means 10pc is PGI in SAP while billing document has not been created (VF01).

[Former Member]

Dear,

If you create the invoice and accounting was done then the Case 2 is the right way.

Create return order for 10pc. VA01 -> VL01n (PGI) -

---

> VF01> MIGO. and give the credit note for 2 pc. VA01 (Reason for return = Physically not good)> VF01 (Credit Note).

and if your document do not process for the accounting then the Case 1 is the right way.

Regards,

Sandip

[Former Member]

Hi Cathy,

Suggestive approach is second one for following reasons"

1.I understand by that you can captuer the reason for rejections and this information in future can be used for analytical purpose.

2.Any rejection can be tracked against orginal invoice and hence least reconciliation

Regards

Sanjay