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Former Member

returnable packaging

hi gurus

could any body plz help me out on returnable packaging.

i'm looking for the whole process, right from how to maintain material master for the same.

my mail id:- ajit.khandual@gmail.com.

regards

ajit

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    author's profile photo Former Member
    Former Member
    Posted on Sep 12, 2007 at 01:51 PM

    Hi Ajit,

    Mail sent.

    Regards

    Ali

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 12, 2007 at 01:33 PM

    1.do this MM01 with mat type VERP item Cat grp LEIH

    2.go zo oms2 coose mat Type LEIH and click on Qty/Value updating button

    3.choose Valuation Area (Plant) and Specify mat Type LEIH save all those things and Exit

    go to mb1c specify movement type 561 Special Stock Indicator V

    go to OVAZ and assign doc type

    go to va01 for standard item and packaging item

    the item Cat is TAL for packaging item and in the configuration window pricing =X

    No billing relevance

    chechk item relevant for delivery

    in the sales order 621 is mvt type

    save the document and go to standard delivery

    go to VL01N delivery and PGI

    go to VF01

    go to VA02 and check the doc status

    go to va01 specify the order type AT with reference of the previous doc number

    here u should specify the returnable packaging item nbr and Qty as well.

    go to Vl01n to post return delivery (LR)

    Specify qty and PGR

    save the doc

    go to MB58 and check the stock position updated item cat here is LAN

    hope will help u pls reward if helpful

    Fabrice

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    • Former Member Former Member

      When the cust doesn' return the goods before the stipulated time then the business should bill him.

      do like this:

      go to VA01 doc type is LN save it and exit

      go to VL01N save it and exit

      go to VF01 for billing standard item now the cust doesn't return the packaging item

      go again to VA01 specify doc type LN and also returnable packaging mat and Qty then now to standard delivery and billing

      Reward if helps

  • author's profile photo Former Member
    Former Member
    Posted on Sep 12, 2007 at 02:50 PM

    Hi Ajit,

    Please find the Complete Notes on Returnable Packaging:

    Returnable packaging – (Special Stock – V)

    Returnable packaging material is used as it is not always possible for a company to include the cost of packaging material in the cost of sale, as some packaging material could be expensive enough that the company cannot afford the customer to keep or destroy it.

    Thus returnable packaging is used in the process where by the business sells items to the customer packed in shipping units such as boxes and crates. The customer is expected to return the packaging items i.e. boxes and crates in a certain period of time, if not, the business may bill the customer.

    Returnable packaging is considered as “SPECIAL STOCK” and is indicated by letter “V” , this packaging is kept at the customer’s location but will remain the property of your company. The special stock can be seen using the stock overview screen MMBE.

    There is no special order type for returnable packaging like in the case of consignment. The packaging material master record should use the material type “VERP” and the item category group “LEIH” (MRP2 - MMR). The item category group LEIH is the sap standard for returnable packaging.

    There are three main transactions for processing returnable packaging, all of which support separate inventory management:

    Creating Returnable Packaging Shipments

    Creating Returnable Packaging Pick-Up

    Creating Returnable Packaging Issue (should the customer not return the packaging material)

    Returnable Packaging Shipments

    When you sell goods to a customer, you may send the goods in returnable packaging. During sales order processing, you simply enter the returnable packaging as an item in your order. You can process returnable packaging either as main items or as sub-items. For example, if you sell drinks in bottles and want the empty bottles to be returned, you can enter the bottles as sub-items for the drinks in the sales order. The item category group LEIH must be assigned to the bottles in the material master record (packaging material) so that they are processed as returnable packaging. During processing, the system recognizes that it is dealing with returnable packaging because the item category group LEIH is assigned to the material. The system then determines another item category in the sales order to allow the material to be processed as returnable packaging. As a result of entering returnable packaging in a sales order, the system carries out the following actions:

    If special stock does not yet exist in your inventory for the customer (or special stock partner), the system creates it when goods issue is posted

    The relevant quantity is removed from regular inventory in your plant and is added to the special stock for the customer. The total valuated stock for the plant remains the same.

    The transaction is not relevant for pricing since the consignment stock remains the property of your company.

    Returnable Packaging Pick-Up

    If the customer returns the returnable packaging to you, you record the transaction in the system by creating a returnable packaging pick-up order (order type LA). As a result, the system carries out the following actions:

    When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into your regular stock at the plant where the goods are returned. Your total valuated stock remains the same since the returned stock was regarded as part of your own inventory even while it was at the customer’s premises.

    This transaction is not relevant for billing.

    Returnable Packaging Issue

    In the following situations, you can create a returnable packaging issue order (order type LN):

    The customer decides to keep the returnable packaging

    The customer damages the returnable packaging and you decide to charge the customer

    The customer sells the returnable packaging to a third party

    As a result of processing a returnable packaging issue, the system carries out the following actions:

    When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock.

    The transaction is relevant for billing since the goods have become the property of the customer.

    Sales Order Types

    The following table provides an overview of the order types used in the standard system for processing returnable packaging:

    Transaction Sales order type

    Returnable packaging pick-up LA

    Returnable packaging issue LN

    When you ship returnable packaging to the customer, you do not need to use a special order type. The transaction is a normal business transaction and you can use either a standard sales order or, if appropriate, a free of charge delivery.

    Returnable packaging consists of materials that are stored at the customer location but which remain the property of your company. The customer is only required to pay you for the returnable packaging if he does not return it to you by a specified time. Using this function you can, for example, process euro-pallets. You can also use it to resell returnable packaging to a third party. Since stocks of returnable packaging form part of your valuated stock even when they are at the customer site, you must manage them in your system.

    However, stocks of returnable packaging must be

    managed separately from the rest of your stock so that you know exactly what stock is stored at the customer location

    Managed separately for each customer

    Inventory management treats returnable packaging as special stock in your inventory and is assigned to specific customers. This enables you to keep track of returnable packaging stock by customer.

    Prerequisites

    Settings in the Material Master Record

    A prerequisite for returnable packaging processing is that the value LEIH (returnable packaging) is entered in the material master record on the second sales screen in the Item category group field. This entry in combination with the document type automatically determines the appropriate item category for each transaction involving the material.

    Settings for the Special Stock Partner

    You must define a special stock partner for processing returnable packaging when a third party is involved. This means you can manage all special stock under one partner. You might use this partner function if your customer, for example, uses a decentralized order processing system but manages returnable packaging centrally. You can also use this partner function to process returnable packaging when a carrier is involved (for example, for euro-pallets). If you want to process returnable packaging using the special stock partner, first make the settings which are described for Consignment Stock Processing.

    If you want to manage returnable packaging for a carrier, for whom a vendor record already exists, you must also create a customer master record for the carrier. You are then able to assign returnable packaging stock to the carrier.

    Process Flow

    There are three main transactions for processing returnable packaging, all of which support separate inventory management:

    Creating Returnable Packaging Shipments

    Creating Returnable Packaging Pick-Up

    Creating Returnable Packaging Issue

    Returnable Packaging Shipments

    When you sell goods to a customer, you may send the goods in returnable packaging. During sales order processing, you simply enter the returnable packaging as an item in your order. You can process returnable packaging either as main items or as sub-items. For example, if you sell drinks in bottles and want the empty bottles to be returned, you can enter the bottles as sub-items for the drinks in the sales order. The item category group LEIH must be assigned to the bottles in the material master record so that they are processed as returnable packaging. During processing, the system recognizes that it is dealing with returnable packaging because the item category group LEIH is assigned to the material. The system then determines another item category in the sales order to allow the material to be processed as returnable packaging. As a result of entering returnable packaging in a sales order, the system carries out the following actions:

    If special stock does not yet exist in your inventory for the customer (or special stock partner), the system creates it when goods issue is posted

    The relevant quantity is removed from regular inventory in your plant and is added to the special stock for the customer. The total valuated stock for the plant remains the same.

    The transaction is not relevant for pricing since the consignment stock remains the property of your company.

    Returnable Packaging Pick-Up

    If the customer returns the returnable packaging to you, you record the transaction in the system by creating a returnable packaging pick-up order (order type LA). As a result, the system carries out the following actions:

    When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into your regular stock at the plant where the goods are returned. Your total valuated stock remains the same since the returned stock was regarded as part of your own inventory even while it was at the customer’s premises.

    This transaction is not relevant for billing.

    Returnable Packaging Issue

    In the following situations, you can create a returnable packaging issue order (order type LN):

    The customer decides to keep the returnable packaging

    The customer damages the returnable packaging and you decide to charge the customer

    The customer sells the returnable packaging to a third party

    As a result of processing a returnable packaging issue, the system carries out the following actions:

    When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock.

    The transaction is relevant for billing since the goods have become the property of the customer.

    Sales Order Types

    The following table provides an overview of the order types used in the standard system for processing returnable packaging:

    Transaction

    Sales order type

    Returnable packaging pick-up

    LA

    Returnable packaging issue

    LN

    When you ship returnable packaging to the customer, you do not need to use a special order type. The transaction is a normal business transaction and you can use either a standard sales order or, if appropriate, a free of charge delivery.

    Pricing and Availability Check

    Whether pricing is carried out for the individual transactions depends on the item category. The schedule line category controls the availability check and the transfer of requirements in each of the transactions. The schedule line category itself is determined by the item category and the MRP type of the material. The order types LN and LA check against returnable packaging for the relevant customer. Requirement records for returnable packaging stock are stored as individual requirements, independently of the setting in the material master record

    Please Reward If Really Helpful,

    Thanks and Regards,

    Sateesh.Kandula

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