Sales Return Best Practice

[Former Member]

Hi Experts,

This is quey asked by 1 of my client.

If you see the Best Practice of Sales Return Process, The process is like,

Return Order---->Return Delivery---->Credit for Returns

But it is always suggested to create the Return Sales Order with reference to the Billing Document/ Sales Order.

So I am confused here, why in the Best Practice SAP has suggested to create the Return Order without any refence.

AKN

[jignesh_mehta3 · Accepted solution]

Hello AKN,

The option is left to the Business to allow create Returns order with or without Reference.

Normally Return Order is created with Reference, but think of a Business where Returns Order is created for material sold under many Invoices. Thus if Business wants to create Returns Order with reference to Invoice, then separate Return order for each Invoice will have to be created.

Further in industries like fast moving consumer goods like bathing Soap, millions of units are sold in a day. Similarly thousands of soaps are returned in a week & create separate Returns Order for each Invoice will not be practical.

But for high value item like Cars creating Returns order with Reference to Invoice is absolutely necessary.

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

Hi Jignesh,

Thank you for your expert answer always.

I understood what you said.

But as you said, for the scenario where return order is created for material sold under many invoices we can still create the return order with reference to multiple invoices right...

But yes in some cases it is very difficult to create the return order with reference.

[former_member184080 · Accepted solution]

Hi AKN,

Yes, you can. Again my example plays a role here. Hwoever, it all depends on business. As you know at the end client is correct

Regards, Sai Krishna.

[jignesh_mehta3 · Accepted solution]

Hello AKN,

Even in same Industry (say Car Manufacturers) different Companies have their own business process.

Unless it is Legal issue (say VAT / Excise reporting) SAP has given free hand to Companies to map their individual Business Process in system.

Though Best Practicies are available but they are only for reference purposes.

Thanks,

Jignesh Mehta

[former_member182378]

AKN,

If you see the Best Practice of Sales Return Process, The process is like,
Return Order---->Return Delivery---->Credit for Returns
But it is always suggested to create the Return Sales Order with reference to the Billing Document/ Sales Order

In my opinion, an important part of this thread is field "Reference Mandatory".

Interesting point is many of the Sales document types, in standard SAP e.g. OR, QT, KE, FD and even CR and DR have the field Reference mandatory = Blank.

The standard processes are given with a view that these would be flexible for as many businesses and scenarios as possible.

It is the "duty" of a Functional consultant to tailor these standard settings, to the need of the client.

Added: In addition to points discussed in previous posts, the reasons for using field "Reference mandatory" could be -

- Trace-ability (In document flow, user can see all "interconnected documents" e.g. Sale order > Delivery > Invoice > RE order > RE delivery > RE billing document)

- Easy of creating RE orders (Many information filled in the RE order via copy control, i.e. from Reference document)

Message was edited by: T W

[former_member184080]

Hi AKN,

Adding to Jignesh's post, Some compaines or infact some countries will have leagl rules when it comes to returns.

Let me explain you with few examples:

1. If the return order is more than 6 months of original Invoice then there shouldn't be any VAT. So, in this case you have to create returns with reference to Invoice.

2. Batch recalling: Some compaines (Esp Pharma Industry) Due to some issues with the any product and batch they may recall the entire batch which is with customers / distrinutors. In this case they always prefer to go with Original Invoice.

So, it all depends on client to client and Industry to Indutry. But, its best to have the reference document.

Regards, Sai Krishna.

[former_member186385]

Hi,

Could you let me know Number of the Building block which you are referring

i could see in 111 ( returns and complaints) best practice, SAP has referred Return delivery creation to Billing/Sales order

so in-order to ensure we both are on same page, please provide the building block number

regards,

santosh