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Quality Notification or Service Notification

We in a stage of designing a process for Quality and Service Notifications.

The current process which seems a bit incorrect to me is

1. Customer Calls with a complaint and want to return a product, we would create a Quality Notification and bring the item back from the customer.

2. If the item is under warranty and no fault of the customer we would either replace or refund the customer and return the product to the supplier.

3. or the item has malfunctioned due to customers fault we would offer the customer a new item or repair the existing one.

4. If the customer accepts a new item we would get a PO and generate a SO.

5. If the customer wants us to repair the product ( this is the part that concerns me ) we are going to close the Quality Notification and generate a Service Notification and proceed with the repair and bill the customer.

My Questions are:

1. Does this process look correct from SAP standpoint?

2. Can we create a Service Notification for a Quality Notification?

3. If not how should this be handled? Whats the SAP best practice in this? as we are not 100% sure if the items is faulty or damaged by the customer.

Hope the above makes sense, please let me know if you need further clarification.

Regards,

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