Buy Back process

[Former Member]

Hi SAP Gurus

I had faced another sales process for my client they call it buyback

They take the old product ( it doesnt matter that the product is sold by them )  from the customer  at some price and sell the new product and reduce the price for the new product . the problem is the old product doesnt come into the warehouse for 4 months at least since they new machine installation takes time .once the installation is done then only the old machine comes to my client place . so if the cost of the new machine  price is 10000$

they bill them only 8000$ and and in record it shows loss . but once the old product comes in to my client place they give 2000$ for the product and bring it in .

but i havent got any clue how to do this process

Any idea r inputs will be helpful

Thanks

[former_member211108]

Hi Rani Raja,

You may give a try for the below process. In this process one

line item will be standard item as your making the sale and another line item will be for procurment of buy back line item. For buy back item please follow the below steps:

• To define customer as vendor
• Create the item category group as ZBAN
• Assign the same to Material Master of buy back material
• Create the new item category XXXX by copying TAS and remove the billing relevance from it
• Make the configuration of item category determination
• Challenge will be of ship to adress in PO. For this you may make the system changes by which at item level you can have different ship to party (with plant adress)

Advantages: With one sales order you will complete the entire process and will have complete traceblity.

Hope this will help you.

Thanks and Regards,

Atulkumar Dagade

[former_member182378]

Atul,

Your suggestions are creative!

Thank you for that!

But probably - from business and technical point of view - it would not be the best solution.

 the problem is the old product doesnt come into the warehouse for 4 months at least since they new machine installation takes time .once the installation is done then only the old machine comes to my client place . 

As the machine that is received from the customer back to the company is after 4 months from the installation (selling) of the new machine; probably creating one single sales order for both the new and the old machine (returned) is not the best solution.

As there are different Sales document category for OR and Return, it would be technically difficult to have both items in one single order.

TAS is not an item category for getting the goods inside the company's deliverying plant.

As you know, 3rd party process has TAS and TAS has goods from vendor to customer (and not to the company)

Please give your comments, so that we can discuss and learn!

[former_member211108]

1. T. W.

In my view the buy back process should not be covered throughReturns as  Returns process is designed for the complaints . i.e if customer  received  the goods in bad shape or different material is shipped  etc.

Here the company is actually procuring the old material hence should be routed through procurement route. Since Process is initiated through sales cycle I am suggesting starting procurement through sales cycle only so that company can track the entire transaction easily.

I know it’s not a third party sale. I have just used the SAP STD provided functionality so that procurement process can be initiated from sales, that’s it.

As far as question of receiving the goods at plant after four month is concern in both the scenario your inventory will update once you have received the goods actually.

Hope this will give enough incite .

One thing i missed in my earlier post is to modify the schedule line so that appropriate account assignment category and item category can be assigned.

Message was edited by: Atul Kumar Dagade

[former_member182378]

Atul,

Thank you for your post!

The reasoning behind not using the returns process interesting!

I think returns process can be used, even if technically speaking the customer might not be returning the old machine if the customer has bought the old machine from some other company (i.e. the selling of that machine was not done from our company).

So, the document flow would be (something) as follows -

1. Sales order

2. Outbound delivery (for new machine)

3. Inbound delivery (for old machine)

4. Billing document (F2 type)

5. Credit memo (CR type - for receiving the old machine)

Please comment on the flow.

[former_member184065]

Dear,

You can create Inbound Delivery based on PO only .So process is below like way .

Old Material : ME21N->MIGO->MIRO ( Credit Note to Customer )

New Material : VA01->VL01N-VF01 ( Debit Note to customer )

If you have any doubts please let me know .

Thanks,

Naren

[former_member211108]

Hi T.W.

The Document Flow would be

1. Sales order
2. Outbound delivery (for new machine)
3. PR for old machine
4. PO For old Machine
5. Inbound delivery (for old machine)
6. Billing document (F2 type)
7. Miro (for old machine)

Thanks and Regards,

Atulkumar Dagade

[former_member184065]

Dear,

So if the cost of the new machine  price is 10000$

they bill them only 8000$ and and in record it shows loss . but once the old product comes in to my client place they give 2000$ for the product and bring it in .

Some thing is eye shaking for me in this case why because ,

They take the old product ( it doesnt matter that the product is sold by them )  from the customer  at some price.

You are saying ,Old Product sold is doesnt matter means your company or any another's company would have sold this product to Customer .So ,in this case ,you are also purchasing that Old Product with some price from customer level point of view .You need to show the record ,how much price of Old product is purchasing in sap and also you need to show the record ,how much price ( exact price ) of your company is selling to customer .Finally ,you have to had the customer product in sap ,if not with what material ,will you show the record of customer old product price in sap .

I think ,go by Purchase Order ( ME21N ) ,purchase the Old product with some price from customer ( record will correctly show as we have sold this material with some price from Customer ) and SD point of view ,sell the New Product with your Company Price as First with 8000$ and secondly create Debit Memo by existing Billing document and get the again 2000$ from Customer.

Thanks,

Naren

[moazzam_ali]

Hi

Vemuri has given you a good suggestion but what I was thinking was using CS process in it. Luckily I have found a link discussing the same issue. Have a look over it.

http://scn.sap.com/thread/1318986

I would like to add in above mentioned link that you can also use 653 movement to do the PGR with reference to return order. Create new sale order with reference to this return for new sale of material with 10,000 price.

After 4 months when material is physically received then you can post this sale order stock to company own stock with 411 movement type. Also create credit note with 2000 value to adjust price difference.

Study the above link, Vemuri's solution and let me know if you need more clarification.

Thank$

[former_member186385]

Hi,

Create the Sales order for the new product, for value 10000$ ( make the condition as manual condition)

Deliver the new product

Bill the customer for new product and make changes to the condition as 10000$

Now create the Return Order with reference to the Billing document, change the material number from New product to Old material

In the Sales order the old material price is 2000$

Do return delivery

Activate Quality inspection , so that the return part will not be valuated unless it will be posted to the warehouse using 321 movement, this you can do as per your requirement

Once the transfer posting is done, then

Create the Credit memo for 2000$

ensure that the Inventory Valuation is in sync between the New product and While returning the old product

May be you can use 309 to transfer the stock from Old material to New material ( take call with MM guys on this

regards,

santosh

[Former Member]

Dear Venuri santosh kumar

    Dear i am also so interested to know about this configuration but i am confused to understand one thing

Now create the Return Order with reference to the Billing document, change the material number from New product to Old material

And it may be so easy from ur side but it is very new to me and plz explain just little bit more

with strong explanation plz plz

Dear i am very so thankful to you

[former_member182378]

rani,

vemuri's suggestion looks good!

Ofcourse some more input in requested from your (your client side). Questions are stated below:

1. Is your client's customer ready to pay the entire price of the new machine?

And when he returns the old machine a credit memo shall be issued? (money shall be given back to the customer)

2. When ever goods are returned by the customer (old machines), it is of value?

In other words, after quality inspection can the client say that the old machine is worthless?

3. In addition to vemuri's suggestons, field Reference mandatory could be used - Functionality in the RE order (VOV8) could be activated.

Thus there would a visible link, that can be seen in the document flow.

[former_member182378]

venu,

You can test this in IDES.

1. create a sales order with a material, delivery, PGI, billing

2. create a return order with reference to the billing document (from above step)

3. in VA01, in the same return order, delete the material that is populated automatically and then enter a different material.

4. Save