Advanced Returns Scenario: Advance Notice 

Purpose

In this scenario, the customer contacts his local branch or distribution center 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 to one of the company’s locations.

Prerequisites

The Customer Returns business process is related to sales business processes. This means that you usually create returns orders with reference to a preceding sales order or the corresponding billing document (invoice).

Process Flow

For the returns scenario with advance notice, the following business process runs in SAP ERP.

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       1.      Create returns order

You create a returns order for this scenario as described in Create Returns Order – Advanced Returns Management.

In particular, you create the relevant returns order items but do not select the Material Received checkbox. Usually, you select Receive into Plant as the follow-up activity, but you can also specify Ship to Other Plant, Ship to Vendor or Ship to Vendor via Other Plant if you already know that the returned material will not remain at the initial location. These follow-up activities are copied to the Material Inspection in Warehouse transaction by default, but you can change them later if required. Other follow-up activities are not relevant for this scenario.

You usually enter By Credit Memo Request as the refund control or After Receipt of Credit Memo if you have specified that the material is to be forwarded to an external vendor. Immediately and No Refund are not allowed as the refund control in this returns scenario.

You cannot enter an inspection code as the material has not yet been returned. However, you can enter what the customer says about the material status as an inspection comment.

       2.      Create returns delivery

When you save the returns order, the system creates a returns delivery for the returns order.

       3.      Post goods receipt

When you receive the materials into the warehouse after the shipment from the customer site, you post the goods receipt as part of returns delivery processing.

       4.      Perform material inspection in the warehouse

You inspect the material in the warehouse for the returns delivery or for the handling unit as part of a returns delivery. You can enter a single inspection result for the whole returns delivery or handling unit at header level, or you can enter different inspection results at item level. You can even split an item if the inspection reveals that different quantities of the returned material have different material statuses.

       5.      Define logistical follow-up activities

You select logistical follow-up activities at header level, at item level, or at split-item level. When you confirm these activities, the system creates the relevant follow-up documents automatically.

       6.      Create goods movement (optional)

If you specify Transfer to Free Available Stock as the logistical follow-up activity for a delivery item or a split item in the material inspection transaction, then the system posts the corresponding goods movement to free available stock using the storage location and stock type that you specified in Customizing for that logistical follow-up activity.

If you specify Transfer to Specified Stock as the logistical follow-up activity for a delivery item or a split item in the material inspection transaction, then the system posts the corresponding goods movement to specified stock using the storage location and stock type that you entered in the Logistical Follow-Up area of the material inspection transaction.

       7.      Create goods issue (optional)

If you specify Transfer to Scrap as the logistical follow-up activity for a delivery item or a split item in the material inspection transaction, then the system posts the corresponding goods issue to scrap.

       8.      Create returns purchase order (optional)

If you specify Ship to Vendor as the logistical follow-up activity for a delivery item or split item in the material inspection transaction, then the system creates the corresponding returns purchase order for the specified vendor. If necessary, you can change the returns purchase order.

Then you continue with the returns process as described in Supplier Returns in ERP – Advanced Returns Management for returns purchase orders.

       9.      Create returns stock transport order (optional)

If you specify Ship to Other Plant or Ship to Vendor via Other Plant as the logistical follow-up activity for a delivery item or split item in the material inspection transaction, then the system creates the corresponding returns stock transport order for the specified plant. If necessary, you can change this document.

Then you continue with the returns process as described in Supplier Returns in ERP – Advanced Returns Management for returns stock transport orders.

In the case of Ship to Vendor via Other Plant, the system proposes Ship to Vendor as the next logistical step when you process the return in the material inspection transaction in the receiving plant of the returns stock transfer.

   10.      Create outbound delivery to customer (optional)

If you specify Send Back to Customer as the logistical follow-up activity for a delivery item or split item in the material inspection transaction, then the system creates an outbound delivery with the customer as the ship-to-party. This outbound delivery completes the returns process from a logistical point of view.

   11.      Create credit memo request in customer refund determination

In this returns scenario, you always have to use the Customer Refund Determination transaction to create a credit memo request for the customer.

   12.      Create credit memo

You create the credit memos for credit memos requests that you created in the Customer Refund Determination transaction using standard procedures.

   13.      Monitor customer returns

After you have saved the returns order, the Returns Overview detail tree displays the following documents or returns steps for a returns order item:

Customer return with shipment to plant node with processing status Process incomplete

¡        Returns Order with processing status Document complete

¡        Credit Memo Request with processing status Document not yet created

¡        Returns Delivery with processing status Document complete

¡        Goods Receipt with processing status Document not yet created

¡        If you specified Ship to Vendor as the follow-up activity: Ship to vendor node with processing status Process not yet started

¡        If you specified Ship to Other Plant or Ship to Vendor via Other Plant as the follow-up activity: Ship to other plant node with processing status Process not yet started.

You can cancel process steps as described in Cancel Process Steps in Customer Returns – Advanced Returns Management.

Result

The returned goods reach their final destination in the receiving location, are forwarded to a vendor or other location, or are sent back to the customer. You have defined a refund for the customer.