Third party returns

[Former Member]

I placed a third party order. The final cusotmer wants to return the material back. I want the material to come back 1st scenario to me. 2nd scenario send it back to the third party vendor. Those which are repairable shall be received back by me. Those that are totally damaged shall go the third party. We are facing this situation regularly in a while so thinking of implementing it through SAP.

Thanks in advance.

[pankaj_singh9]

Hi,

First of all to track the stock of materials returned back by customers, you should have a separate Storage Location as "Returns Store"

Now follow the below procedure to get back the material stock from customer;

1. VA01 - Create Returns order w/o reference

2. VL01N - Create Delivery and do PGR (Stock will get received in "Returns" Stock of Customer, view in MMBE)

3. MIGO - Transfer Posting > Others (Transfer stock of materials from Returns to Un-restricted if to be used by your organization or

Blocked Stock if to be returned to vendor as per requirement)

Use following Movement Types;

453 Transfer posting to own stock from returns from customer OR

459 Stock transfer returns to blocked

At this stage following A/c Entry will get generated;

Stock A/c - Dr

COGS A/c - Cr

4. VF01 - Create Credit Memo w.r.t. Delivery Document

A/c Entry generated will be;

Customer A/c - Cr

Sales Revenue - Dr

Now follow the below procedure to return back the material stock to vendor;

1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)

2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select Blocked stock from

where you want to return the stock to vendor)

Accounting Entry generated will be;

Stock A/c - Cr

GR/IR Clearing - Dr

3. MIRO - Credit memo w.r.t. Returns PO

Accounting Entry generated will be;

Vendor A/c - Dr

GR/IR Clearing - Cr

[Former Member]

Pankaj,

Thanks for your reply. Your solution would be good only if I want to receive the material back from my customer. So I create a Return Sales order and bring the material into stock using the delivery. But to Mahesh's question, in a 3rd party process, the company is not managing the material on a inventory basis. So in theory I would not want the material back from the customer, as I am not IM managing that material. I would also be keen to know if anybody has a solution to this question? What would be the process if the customer wants to return the material back to the company?? How would the following docs flow through?

Let me know what you guys think.

Thanks

Ashvin