Partial PGI Requirement

[soumyadipta_das]

Dear Gurus,

I have a requirement from my client as below:

Their business process is when they receive any order from customer, they raise the sales order. Then once stock goes out from warehouse, they create the delivery and do PGI for full quantity.

Now, customer wants less quantity. Say the order was for 10 qty and now they want say 5 quantity. Business do partial billing for 5 quantity. Rest 5 quantity they need to return back to their unrestricted stock.

As partial reversal of PGI is not possible, I have suggested the following :

For the remaining 5 qty which is unbilled, make a proforma invoice (as billing is not required and need not generate any accounting entries). Now with reference to this proforma, make a return order, then return delivery then PGR. Stock would flow to blocked. Then by 343 mvt type, transfer to unrestricted.

Is this possible to meet the above requirement ?

Please suggest.

Thanks.

[VeselinaPeykova]

What is the exact reason that you delivered 10, but the customer decided to recive 5?
Was it an error at order taking, or quality complaint, or damage in transit, or the customer could not pay?
The outcome could be different in these cases.
1. Error at order taking (the product is OK): you want to capture and report on such cases and based on that perform some change manegement or implement process improvements, because they decrease the efficiency of your logistics. In such cases typically you update the order with return items, create return delivery and perform billing for the complete quantity (10-5), if this is allowed by local legislation. In some countries returns are more complicated and you need to create a separate invoice for the returns. You receive the FG in unrestriced stock.
2. Quality complaint - you will probably want to reimburse the customer (assuming the complaint is made when you delivered the goods). You receive the stock with return delivery to blocked stock.
3. Damaged products during transportation by own or hired drivers. You create return delivery to get the stock back, bill the client for 5 EA. As a second step you create an order and delivery (most probably different pricing) to bill the driver or FA.
4. Customer could not pay: receive the 5 EA back with return delivery to unrestricted stock, bill for 5 EA + optionally charge for the inconvenience and record customer behavior via order reasons or other means.

There is a whole functionality available in standard systems - Advanced Returns Management, which provides a lot of flexibility, including warehouse inspections and different options for billing, depending on the process. Is there any particular reason why you chose not to consider this one? Also, if you have DSD, it is possible to set this up without Advanced Returns.

[soumyadipta_das]

Hello,

Could this be possible / achieved by any kind of developments at backend??

Means, can I automate the process like the below:

After doing the partial billing,is this possible that by running any z-program the remaining stock could be transferred bacl to warehouse / post goods receipt in system?

Please suggest.

[Jelena]

Not sure what your terms and conditions of sale are but usually as soon as PGI is done, it transfers the ownership of goods. So if the customer changed their mind or whatever happened then they need to return the unneeded items. You bill them for 10 and then promptly do a return for 5. AR collects payment for 5 at the end. I'm not sure why you're trying to invent a Z process.

When you order on Amazon, can you change or cancel your order after it's been shipped? Of course not! Same here.

[phanikumar_v3]

You are considering only inventory calculations here-but will create problem in accounts receivable at finance end..

You have supplied 10 in delivery-but billed only 5 due to some reasons-until and unless you complete billing for the remaining 5-This delivery will keep on visible in VF04 report-Is this OK??(Proforma invoices will never update billing status of a document)

Also-You move the goods from ware house even without delivery creation at SAP-so can we change/initiate delivery creations at SAP only after customer confirmations--Is this ok to business?

Phanikumar

,

You are considering only inventory calculations-but will create problem in accounts payable in Finance.

Ex:You have supplied 10 in delivery-but billed only 5 due to some reasons-until and unless, you complete billing for the remaining 5-This delivery will keep on visible in VF04 report-Is this OK??(Proforma invoices will never update billing status of a document)

Also-You move the goods from ware house even without delivery creations at SAP-so once after customer confirmations only why cant we initiate delivery at SAP end followed by billing-Any business concerns?

Phanikumar