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Oct 22, 2020 at 05:58 AM

Consigned Inventory as Replacement part w/in ARM



  • Customer implementing S/4HANA Cloud Essentials (aka multi-tenant edition)
  • Multiple Returns scenarios, however, they're being guided to leverage Scope ID BKP (aka Accelerated Returns Management or ARM)... see flow below for specific to customer
  • You'll notice Consigned Inventory as an input for replacement product

  • moving consigned to repair pool is perceived as valuation at time of consumption from consignment
  • however, desire by customer is to have product NON-VALUATED upon movement from consigned to Repair Pool (i.e. unrestricted), as well as NO CrMemo for RTV
  • current process leverages non-valuated plant for Return from Vendor, then into consignment, as well as from consignment into non-valuated plant to deliver to customer

  • NOT CERTAIN this is GAAP, or IFRS acceptable from a FI perspective
  • Curious, if other similar requirements are out in the community; and how handled specifically w/in S4HC Essentials. Thanks for feedback