Advanced Returns Scenario: Direct to Vendor 

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 decides that the materials must be returned directly to the vendor. This is often the case when the materials have been shipped to the customer by third party delivery from the vendor. The sales representative creates a returns order to initiate the return of materials directly to the vendor.

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 a direct shipment to the vendor, the following business process runs in SAP ERP.

       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 without selecting the Material Received checkbox.

You enter a return reason to specify why the customer wants to return the material.

You select the follow-up activity Direct Shipment to Vendor, and you enter the vendor to which the material is to be shipped.

You enter By Credit Memo Request or After Receipt of Credit Memo as the refund control. Immediately and No Refund are not allowed as the refund control in this returns scenario.

You cannot enter an inspection code as the material is still at the customer site. However, you can enter what the customer says about the material status as inspection comment.

       2.      Create returns purchase order for direct shipment

When you save the returns order, the system creates a returns purchase order for direct shipment to the specified vendor.

       3.      Create outbound delivery for returns purchase order (optional)

You can create an outbound delivery for the returns purchase order although the material is not at hand. This outbound delivery allows you to record results of a material inspection performed by the vendor.

       4.      Create a statistical goods issue (optional)

You post a statistical goods issue for the outbound delivery similar to the procedure for returns purchase orders from own locations.

       5.      Enter results of a material inspection by vendor (optional)

You enter the results of a material inspection performed by the vendor for the outbound delivery.

       6.      Enter credit memo from vendor

You enter the credit memo received from the vendor for the returns purchase order.

       7.      Create credit memo request in customer refund determination

You use the Customer Refund Determination transaction to create a credit memo request for the customer with respect to the returns order.

In the Items for processing table, you see an entry related to the original returns order item, entries for the inspection results related to that returns order item, and entries with the credit memos from the vendor related to that returns order item. You can create the credit memo request based on the different entries.

       8.      Create credit memo

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

       9.      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 in this scenario.

Customer return with direct shipment to vendor node with processing status Process incomplete

¡        Returns Order with processing status Document complete

¡        Credit Memo Request with processing status Document not yet created

¡        Returns Purchase Order for Direct Shipment – The processing status is usually Document complete but can also be Document incomplete when required data, for example a mandatory vendor RMA number, is missing.

¡        Invoice Verification with processing status Document not yet created

The optional steps for outbound delivery and statistical goods issue are not shown. These returns steps appear after you have performed the process steps involved.

The Inspection returns step does not appear either unless you record the material inspection performed by the vendor.

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

Result

The returned goods have been received at the vendor. You have defined a refund for the customer.