How to handle return order before/after the customers payment

[Former Member]

Dear All,

I am aware of the return order process.

We sent the material to customer. Customer found the material damaged or wrong.

In this case we have to replace the material. We need the clarification on the following scenarios.

Scenario1: Customer found the material damaged. Customer will scrap the material at his place. We will replace the material with the same material as free of cost. How to manage deliveries and invoices in this case?

Scenario1: Customer found the material damaged. Customer will return the material. We will replace the material with the same material as free of cost. How to manage deliveries and invoices in this case?

Scenario3: Customer received the Wrong material. We will take the material wrong material back and replace the correct the material with the fresh invoice. How to manage deliveries and invoices in this case?

I wanted to know how to handle these scenarios if the Customer paid the amount against the invoice.

Similarly I wanted to know how to handle these scenarios before the customer making the payment.

So totally 6 Scenarios. Based on After/Before Payment, I need clarification. Kindly clarify.

Regards,

Mullairaja

[Former Member]

hi,

sorry to say this

only one question for one thread

take this right way

balajia

[Lakshmipathi]

Scenario 1

No configuration changes is required. Just create F8 delivery related proforma. By doing so, customer will not be debited; only your inventory will get adjusted.

Scenario 2

Create a return order referencing the parent billing document, do PGR, take the stock into quality. Again follow the above process. You can also follow free of charge delivery process

Scenario 3

Have the order reason as mandatory and maintain the reason as Material wrongly supplied. For this also, you follow the scenario2 suggested above

These are the process you can follow if customer has already paid. If not, against the returns, you can issue a credit note to the extent of rejected value.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi,

Thank you very much for the reply.

I will narrate my understanding.

If the Customer already paid the Amount

If the materials are coming back, we can take back the material (Wrong material or Damaged material) using return order (RE). No need to send Credit note. Material will be send along with Proforma Invoice (F8). Replace the material as Free of Charge item (FD).

If the materials are not coming back, Replace the material as Free of Charge item (FD). Material will be send along with Proforma Invoice (F8).

If the Customer didn't pay the amount

If the materials are coming back, we can take back the material (Wrong material or Damaged material) using return order (RE) with the billing type Credit for Returns (RE).

Iif the materials are not coming back, with refrence to Credit memo request (CR) we can issue Credit note (G2). Material will be replaced with normal sales process (OR - LF - F2).

Kindly confirm whether my understanding is correct.

Regards,

Mullairaja

[Lakshmipathi]

There is no fixed thumb rule for this. What I had suggested is one of the options that you can follow.

In some of my earlier projects, there were situations where the customer had paid the amount in full but at a later date, they rejected some partial lot. What the client followed was that in the subsequent despatch, they offered discount on the net value by showing separately the rejected value.

In whatever way we want, we can configure the system but ultimately, it is the client who are going to operate. So have a word with the client, ask how currently they follow and accordingly, map the scenario in SAP.

thanks

G. Lakshmipathi