Sale of Raw Materials to Dealers Free of Cost and Returns

[vijay_srivasttava]

Hi All,

I have a scenario from an automobile sector.

We send Spare Parts to Dealers for any repairs and replacements of damaged items. We follow this process as sales.

1. We want to categorize this kind of Sales separately as Warranty Sales. For that, we are creating a separate Sales Order Type, as ZWAR. This will help us to track this sale separately as Warranty Sales.

2. Warranties sales should be credited to a separate GL Account. Kindly suggest how do we manage this.

3. Warranty sales invoice will attract all applicable taxes i.e. excise duty, VAT/CST @ 5%. How do we manage this specific to only warranty sales?

4. For the spare parts which are replaced has to be sent back to Main company. Dealers may not return the full quantity or bill wise quantity. How this option can be given in SAP?

5. At the time of defective material returned by dealer, following accounting entry should be generated by system –

Warranties A/c Dr. (with gross amount including all taxes)

Dealer/Customer A/C Cr (with gross amount including all taxes)

How to achieve this in SAP?

Please suggest.

Suggestions from FI Forum:

1. the scenario which you have mentioned can be done in SAP.

2. Hi Vijay,

Warranty claim which is under Sales and Distribution module and you may get good results,if you post as SD thread ,OK any way ,just follow mentioned links which will give more detailed information about warranty claim.

http://help.sap.com/saphelp_rc10/helpdata/en/0f/bdd240caeb752ae10000000a155106/content.htm

http://help.sap.com/saphelp_rc10/helpdata/en/0f/bdd240caeb752ae10000000a155106/content.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/cb/e8d36244304940bb284e55d6a500dc/content.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/51/b2c77ec1dc40069170a888e6842764/content.htm

Regards

Mani Kumar

[Former Member · Accepted solution]

1. We want to categorize this kind of Sales separately as Warranty Sales. For that, we are creating a separate Sales Order Type, as ZWAR. This will help us to track this sale separately as Warranty Sales.

-----   And a separeate price procedure should be added to this new order type ZWAR base on your further requirement, let's say ZWAR001.

2. Warranties sales should be credited to a separate GL Account. Kindly suggest how do we manage this.

--------------  You can set up a special account Key, let's say ZW1, and the ZW1 should be assinged to the corresponding amount in the procedure ZWAR001. and in VKOA, you can add a entry to assign the ZW1 to the warranty account. then the warranties sales will go to the separate GL account.

3. Warranty sales invoice will attract all applicable taxes i.e. excise duty, VAT/CST @ 5%. How do we manage this specific to only warranty sales?

------------  you can add any of the taxes and other price condition to the procesure
ZWAR001.

4. For the spare parts which are replaced has to be sent back to Main company. Dealers may not return the full quantity or bill wise quantity. How this option can be given in SAP?

------------- Is this return related to your warranty sales order ZWAR ? i think this may should be handle by offline process ? or maybe you need a Warranty Return order type as well .

5. At the time of defective material returned by dealer, following accounting entry should be generated by system –

---- 
Warranty Return order should be working for this requirent, but need to know the full process of your warranty Return.

[vijay_srivasttava · Accepted solution]

Hi,

Thanks for the valuable inputs.

With respect to your query on warranty returns process, there is no specific process followed. Also tracking every item sold and the returns is tracked in excel. I would request you to suggest the best way to manage in SAP. The requirement is discussed as above.

1. Return Process (returns bill wise and without bill wise)

2. Tracking item wise returns.

3. At the time of defective material returned by dealer, following accounting entry should be generated by system –

Warranties A/c Dr. (with gross amount including all taxes)

Dealer/Customer A/C Cr (with gross amount including all taxes)

4. How the pricing procedure to be created including taxes.

[vijay_srivasttava · Accepted solution]

Hi,

Thanks for your valuable inputs. With respect to your query on Warranty Returns process, I dont have any specific proces in SAP. But I want to map this in SAP.

How I want to do, I have already described above. Kindly give your suggestions as to how this can be done in SAP.

[Former Member · Accepted solution]

For Return process, you can follow the SAP standard Return Process

1. Warranty Return Sales Order

2. Inbound delivery

3. Credit Memo ( this will settle the accounting as same as the Warraty Sales process)

How the pricing procedure to be created including taxes.

------ SAP has standard document of the pricing procedure, you can search in the forum.

[former_member184065 · Accepted solution]

Well,

How will you create Inbound Delivery with ref of Return Sales Order ? where is the option ?

Vijay,

Tell me answers to below queries .

1.How you are getting goods ( damaged ) from dealer ? customer  ?

2. How will you issue that ( damaged goods after completion of work or whatever ) goods to dealer / customer ?

3. How you are finding ,that goods are having warranty date or not ?

Thanks,

Naren

[vijay_srivasttava · Accepted solution]

Hi,

We are selling the spare parts at initial stage for the repairs. The dealers are sending back the replaced items (damaged items).

We first receive the damage parts in Warranty and Service department. Once it is confirmed that the item is under warranty then only we raise the JV. 

Warranties A/c Dr. (with gross amount including all taxes)

Dealer/Customer A/C Cr (with gross amount including all taxes)

[Former Member · Accepted solution]

Sales order type -- RE

Delivery type -- LR

[vijay_srivasttava · Accepted solution]

Hi,

Can you please the entire warranty returns process with T Codes suggested by you?

[Former Member · Accepted solution]

VA01 Return Order type RE

VL01N Delivery type - LR

VF01   Billing type -  RE

[vijay_srivasttava · Accepted solution]

Thanks, I will come back once I succesfully complete the process. 

[vijay_srivasttava · Accepted solution]

Hi,

I have a doubt here, do we need to create a seperate Material Type- Warranty Items, so that we can categorize the items under this material type are all warranty items for the purpose of selling, although they are raw materials. And incase we create this material type do we maintain the reference material type as FERT?

[vijay_srivasttava · Accepted solution]

Hi,

I am creating warranty return sales order, I am getting error message

No pricing procedure could be determined

Message no. V1212

I need to know, how the configuration setting needs to be done in this case. I checked threads on this issue, but could not resolve the same.

[former_member184065 · Accepted solution]

Dear,

Message no. V1212 -put this message in Google and see.You will get so may threads over there.

Thanks,

Naren