Function documentationCompensation for Customer Returns

 

You can use this function to specify compensation for customer returns orders and either trigger a credit memo request or a subsequent delivery free of charge. Customers can be compensated at any time during the returns process. However, since compensation usually depends on the inspection results, the customer is usually compensated after the returned material has been inspected.

Integration

If the company location in which the returns order is created is not in the same company code as the company location that receives the returned goods, then internal refund determination may be necessary. For more information, see Internal Refund Determination.

Example Example

A customer contacts his local branch (sales organization) and informs the internal sales representative that he wants to return some goods that are still at the customer site. The sales representative creates a returns order to initiate the return of materials, but to another company location (receiving plant) in a different company code. The company code of the sales organization pays the refund to the customer, and the material receiving company code refunds the company code of the sales organization.

End of the example.

Once you have created a credit memo request, you can refund the customer by creating a credit memo using standard billing procedures. For more information, see Billing Processing.

Prerequisites

  • You have made all the required settings for refunding, subsequent delivery free of charge, and non-valuated returns stock in Customizing by choosing one of the following paths:

    • In Customizing for Logistics - General, choose Start of the navigation path Advanced Returns Management End of the navigation path.

    • In Customizing for Sales and Distribution, choose Start of the navigation path Sales Next navigation step Advanced Returns Management End of the navigation path.

    Note Note

    In Customizing for Advanced Returns Management in the Specify Settings at Client Level activity, you can configure a simplified entry screen with just one tab.

    End of the note.

  • You have configured the optional usage of the returns refund codes and return reasons as pricing parameters for customer refund determination. You do this in Customizing for Sales and Distribution by choosing Start of the navigation path Master Data Next navigation step Basic Functions Next navigation step Pricing End of the navigation path. For more information about the use of pricing parameters in pricing, see Pricing and Conditions (SD-BF-PR).

Features

Display Worklist and Returns Order

You can select a worklist of returns orders for which compensation is pending, meaning for which you have already performed an inspection or for which you have already received a credit memo from the vendor. You can then choose a delivery from the worklist and process it. The selected returns order is displayed in the work area with comprehensive information from previous process steps, such as the return reason, inspection results, and information on whether or not credit has been received from an external vendor or another company code. If split items were created in the Material Inspection in Warehouse transaction, they are displayed underneath the returns order items. You also see additional lines if several credit memos have been received either from an external vendor or through intercompany billing. If these splits are not acceptable for compensation, you can create a manual split for returns order items. Select Copy for the items that you want to copy to your credit memo, credit memo request, or subsequent delivery free of charge.

Refund Amount

Enter the refund code for the respective rows of returns order items or split items if you want to specify the refund amount using this parameter, which is specific for Advanced Returns Management. The returns refund code is a pricing parameter for the standard pricing function. Returns refund codes can be configured, for example, to represent a percentage deduction from the paid sales net price. If you do not want to use this parameter, select the Foreground Processing checkbox so that the system opens the credit memo request again after automatically creating it. In the opened document you can adjust pricing, for example.

If you do not want to issue a refund for an item, you must enter an appropriate rejection reason for the credit memo request. Such credit memo request items are required in order to complete the refunding process for the returns order.

Replacement Material

To determine the replacement material delivery, enter the replacement material, the replacement quantity, and the supplying plant. You can specify a different replacement material than the returned material. The supplying plant can be different than the plant that received the returned material.

You can specify a delivery block depending on the SDF order type in Customizing so that certain users are allowed to create an SDF but are not authorized to release it.

Non-Valuated Returns Stock

If you use the function for non-valuated materials to trigger compensation for the customer by creating a credit memo request or a subsequent delivery free of charge, the system also automatically posts a goods movement for valuating the material.

When you save the credit memo request or subsequent delivery free of charge, the system immediately posts the valuation goods movement for returns order items if you have confirmed logistical follow-up activities in material inspection for their delivery items or split items or if you have not yet begun material inspection for their delivery items. If you have already begun the material inspection for the delivery items and split items of returns order items, the system posts the goods movement for valuation as soon as you confirm the logistical follow-up activities.

Activities

On the SAP Easy Access screen, you have the following options for defining compensation for customer returns:

  • Choose Start of the navigation path Logistics Next navigation step Central Functions Next navigation step Advanced Returns Management Next navigation step Returns Refund Determination Next navigation step Determine Customer Refund End of the navigation path.

  • Choose Start of the navigation path Logistics Next navigation step Sales and Distribution Next navigation step Sales Next navigation step Environment Next navigation step Advanced Returns Management Next navigation step Determine Customer Refund End of the navigation path.

Select a worklist with the returns orders pending compensation. Choose one of the returns orders from the worklist and process it. You have the following options for determining the refund:

  • You can enter a refund code or a rejection reason. Choose return order items or their split items you want to process and create the credit memo request in the background. If you choose foreground processing, you can further process the document that is created to make price adjustments, for example.

  • Enter the required data for the replacement material and the supplying plant. Choose returns order items or their split items you want to process and create a subsequent delivery free of charge in the background.