Item sold, returned back by customer due to defect and free item given

[Former Member]

We have a scenario in the company as below:

1) We sell car battery to customers. We follow SD cycle and bill it to customer - Handled in SAP SD

2) Sometimes if battery is defective, customer returns it back to company - no records only taking battery manually

3) We issue a free replacement battery via SD as FoC (free of charge) - Handled in SAP SD

Currently we have no control in SAP for step 2. It is completely manual and we cannot know the current status of such returned batteries.

We would like to take step 2 into SAP with zero value as returns.Take it in to stock and dispose it off via SAP.

Am not able to get round it.

[Lakshmipathi · Accepted solution]

As you should be aware, when you create a return sale order with reference to parent billing document, the corresponding data from the source document would be copied to the subsequent document.  Having said this, since the material (Battery) would have been created as a Valuated material, if you create a return delivery with reference to the parent billing document, obviously, inventory to that extent would be increased.  In order to avoid this, what you can do is assign item category TAX or TAW to your return order, so that there won't be any impact to your inventory even if you do return delivery in SAP. 

The other option is to create a return order directly without referencing the parent billing document.  In this case, you can differentiate the material code with material type as UNBW and follow the normal SD process.   Only by testing these scenarios, you will come to know which one suits the business requirement both from SD and FI perspective.  Share the outcome after your testing.

Of course, with either of the above options, you can track how much batteries were returned for any given period, from SD point of view. 

G. Lakshmipathi

[former_member182378]

Siddharth,

In step 2, you want the price of batteries to be zero. So you can setup

Return order > Return delivery with PGR

You can give an order reason in RE order, this will help in reporting.

No need for RE credit memo, as you are giving FC, in place of the defective batteries.

If you want to keep track of inventory, then select the movement type (651), defective batteries will go to QI stock type. If you don't require inventory, then in schedule line category give movt type = blank.

TW

[venu_ch8]

Dear TW Sir

Sorry For Interruption

 If you don't require inventory, then in schedule line category give movt type = blank.

I Think if we want to maintain Non valuated stock report we can find By using this T.code CN52/CN52N  ,,If we use UNBW Material Type Or TAX/TAW Item category  as Lakshimpathi sir said

But if we keep Movement type Blank In S.category and creates Return order , i dont think so we can Trace the Non valuated stock IN CN52 Or CN52N

What i am Going to tell is For tracking Purpose it may be Difficult ,if we Leave Blank in S.Cat 

Thanks a lot

[former_member182378]

venu,

I have given some options, ultimately the business requirement and the client will specify the way forward.

Business wants to track the defective batteries being returned. This can be done by tracking the PGR quantity in the Return deliveries. So tracking can be done from Return document level itself.

If the need is to dispose the returned stock, then one option can be do not count stock in SAP (i.e. movement type = blank).

TW

[venu_ch8]

Dear TW Sir

yes you are Right just i have one Thought About tracing Of Non Valuated , That is the reason only sir

Thanks a lot sir

venu

[former_member182378]

venu,

Keep posting, it is always good to ask, to have other ideas etc.

This way the learning will be faster.

Good luck,

TW