returns process

[Former Member]

In returns Process, after customer sends goods back to the company bcauz of Damaged goods ,

what will happen with that damaged goods. or what has to be done with that.

2. What has to be done by that scrap goods which has come back to th company.

what is the activity has to be done. certainly scrap has to be sold out.

[Former Member]

Sales Return Process

Incase of Return Sales Order:

T.Code for copy control: VTAF

Source Document: F2

Target Document: RE

Item category REN

Considering the above settings are done:

Create return sales order RE (with Reference to Billing Document) & the data will be copied as it is in Return Sales Order - RE. For Eg: here you require to change to quantity from 10 to 2, as you want to take back into Inventory of only 2.

Incase of Return Delivery:

T.Code for copy control: VTLA

Source Document: RE

Target Document: LR

Item category REN

Considering the above settings are done:

Create Return Delivery through T.Code VL01N & do PGR (Post Goods Receipt). This will add the stock to blocked stock. This will take care of Inventory.

To address the issue of how to take Credit for Excise, use T.Code: J1IH --> other Adjustment & based on the credit to be taken, make the necessary entry.

Incase of Credit Memo:

T.Code for copy control: VTFA

Source Document: RE

Target Document: Credit Memo

Item category G2N (Check in System)

First in VA02, remove the Billing Block in Return Sales Order - RE & save the document. Now in T.Code: VF01, enter Return Sales Order Number & select the appropriate Billing Type (Credit Memo) & Enter& Save. This will create Credit Memo.

Scrap Sales Order Cycle:-

Step 1: Sales Document Type

IMG > Sales and Distribution > Sales > Sales Documents >

Sales Document Header:

1. Sales Document Type:The sales document types represent the different business transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order type, always copy as with reference to similar sales order. If possible use standard sales order.

2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.

3. Assign Sales Area To Sales Document Types:

A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these, else Sales Order creation will give error.

B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required Sales Area. This will minimize selection of Sales Order Type as per sales area.

Sales Document Item:

1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as from standard & maintain New.

2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category

Schedule Line:

1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new, copy as from standard & maintain New.

2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item Category + MRP Type / No MRP Type.

Step 2:

IMG > Logistic Execution > Shipping > Deliveries >

1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Item Categories for Deliveries: If possible use Standard Item Categories for Delivery Type. Incase if required to create new, copy as from standard & maintain New.

3. Define Number Ranges for Deliveries: Ensure to maintain number range.

Step 3:

IMG > Sales and Distribution > Billing >

1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Number Range For Billing Documents: Ensure to maintain number range.

3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to Billing, Deliver to Billing, etc.

Stock for Scrap Sale:

There are 2 options -

1. Scrap material can be identified as regular material at the point of sale. If yes, then we can use the same material in Sales Order.

2. Scrap material cannot be identified as regular material at the point of sale. For Eg: A Automotive seat manufacturing company purchases different grades of foam, but has a single scrap yard for foams. Now at the point of sale it may not be possible to differentiate. But we require a material & stock to sell scrap. We can create a dummy material say 'scrapfoam' & as concerned for stock, we can generate stock as per requirement through T.Code: MB1A, using movement type 502.

Regards,

Rajesh Banka

[Former Member]

hi,

you have to consider the type products which are coming back in returns. Not every product which was scrapped can be sold again.

Once the return is made the quality dept has to decide whether its only scrapped or can be sold as scrapped also.

Assuming you receive a product under damaged condition if is no more useful we have to scrap it. There is scrapping procedure available in SAP on the MM module. (you see more of this in the dangerous goods management or pharmaceuticals).

In case you want to sell it, you need to identify the scrap as saleable in the sytem. May be you want to have a separate material type for it. Or it can be directly sold and post an FI entry without SD.

Regards

sadhu kishore

[Former Member]

Hello,

There are many ways to do the same.

Once is to refurbish the goods and make it into re-saleable and sell it. If it not in a condition to re-use, the sell it as scrap. Maintian a maula pricing condition for the same in the order and maintian PO filed comments as Scrap sales.

You need to understand the business process of scrap handling from the company to design the process.

Prase

[jignesh_mehta3]

Dear Sabina,

Whenever any goods are taken back, there are kept seperately by SAP system under head retuns (restricted) stock.

Now it is upto the company policy whether to repair / work upon these returned goods & place into Unristricted Stock again, so that they can be sold again...

If the returned material is totally scrap then they can be written off... or you can perform scrap sales.

As far as your Customer (who has returned the goods) is concerned you can provide him with appropriate credit note or give him subsequent free of charge delivery...

Hope this helps...

Reward if useful...

Thanks,

Jignesh Mehta

Mumbai

[Former Member]

Hi,

When the goods are returned back , it first goes to the Block/restricted stock.

The quality assurance department will varify it and if they certify as 'OK', then again a document is created with a different movement type to include it in the un-restricted stock.

In the process, we have to create a Return order (you have to put a order reason,why this has taken place ), which can be created either with reference to the Sales order or Billing document. Ofcourse it can be created without any reference also.

With reference to the Return order, a Return delivery is created and a Put away & PGR for the same.

Then, we have to issue a Credit memo for the return and **it is created with reference to the Return order**.

Before creating a Credit memo , you have to remove the "billing block" from the Return order.

Thanks,

Raja