Returns

[Former Member]

Dear All

We have Return process Return saleable and nonsalable both are configured as Order related billing

second one is reference is not necessary. I fail to understand why this kind of configuration is there for

returns always.

Now if the configuration setting are changed to Delivery related billing and reference mandatory

is there any unwanted impact in the future.

Pl let me know.

[jignesh_mehta3 · Accepted solution]

Returns Credit memo is created with Reference to Returns order, because gererally it takes times for Customer to return Goods to your plant.

Customer will generally insist on receiving a Credit Memo before he returns the damaged good back to you.

That is why in SAP Standard Returns Credit Memo is created with reference to Returns Order.

If your Business process requires, you can definitely change this to Delivery Related Billing. There will no impact in future.

Just make sure to maintain proper Copy Control Records.

Hope this helps,

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

where can i find copying controls for this.

[Former Member · Accepted solution]

hi,

The copy control settings can be done in VTFA for billing to order copying..or VTAA for order to order.

Regards

Raghu.

[former_member182378 · Accepted solution]

As i already suggested i would not advise RE credit memo to be created from LR.

All complaint (credit, debit) processes in SAP SD are having bill doc created from order and NOT from delivery.

But if you want to go ahead then copy control is VTFL, you can take LF --> F2 as a ref to copy and create your own LR --> RE

Ensure that ONLY after PGR the RE credit memo is created. This you shall have to put as Requirement in VTFL.

As you are going away from SAP standard, please test intensively.

Good luck!

[former_member182378]

I fail to understand why 
this kind of configuration is there for
returns *always*.

i could give you some clarification for Order related RE (return credit memo) based on my experience -

1- Easy reference for customer: The customer warehouse staff creates "a reject order" then he communicates this to his vendor (in this case your company). In mutual agreement, via phone call, a RE order is created. It is easier for the customer to get credit memo based on this mutually agreed RE order. (or else he has to check everytime again the correctness of the credit memo)

2- TRUST: Selling of goods and Returning of unsatisfactory goods is an ongoing process. As it has happened earlier, the vendor (your company) knows that when customer says 10EA are damaged - THEY ARE DAMAGED!

Thus you create credit memo based on RE order and do not wait - always - to check the goods physically. If indeed there are less damaged that customer is saying, then you could also adjust the process and have an inspection time-frame for 2 month where by you first check the damaged goods and then make credit memo based on RE order.

3 - maybe also, Functionalities like Billing block and Order reason are in an order and not in a delivery.

Billing Block is KEY. After vendor is satisfied, only then does he approve by removing the billing block and create a credit memo. This facility is NOT available in Delivery

having given you above clarification points, there could be many business processes in the way returns are done, e.g. -

a. Customer calls vendor to create RE order. Vendor employee visits and inspects damaged goods in customer's warehouse and then creates RE order. Delivery process follows....

b. Customer calls vendor to create RE order. Vendor creates RE order and directs the goods directly to the its vendor. And deducts payment from its vendors account, which it has to give to its customer

c. Customer calls vendor to create RE order. Vendor creates RE order and creates RE (credit memo) ONLY after approval from warehouse staff about the state of damage of the goods

nonsalable both are configured as Order related billing

I don't see the need to create billing documents for nonsaleable goods. If these goods were not sold why are you returning money to the customer? or is it something else....

We receive packaging material from our customers as RE orders, we just create deliveries where we do GR. NO BILLING.

reference mandatory

Reference is NOT mandatory, In creation of RE orders

Entirely dependent upon business processes and customer demands.

Delivery related billing and reference mandatory 
is there any unwanted impact in the future.

I would NOT go for delivery related billing. I would continue Order related billing. But I would make the process in such a way that the Approver can remove the billing block ONLY after the warehouse staff give their approval. According the Credit memo and its value can be created.

[kalyan_mokirala]

Hi,

Normally customers demand for credit before their goods are returned based on such requirement we can have order related billing. For instance a very big customer who is purchasing goods from your company and is giving good business to your company; for such customer you have to give credit at the instance when returns order is created. He can't wait until the goods are returned. This is a case where we require order related billing for returns. You can have an option of creating a delivery subsequently.

For non-salable returns for example a pharma industry or a consumer care industry where you have expiry for the goods sold. In such case, if the goods are expired and it requires transportation for the returned goods and the goods have to be destroyed. For both this you need to spend some amount for which you will not be getting any thing. In such cases customer will be asked to destroy the goods at his site and a partial amount is settled for the virtual type of nonsalable returns. Here customer is not returning any good and we can have order related billing here.

I suggest you to have both types of returns order types order and delivery related billings for this. Customer care team will be using necessary returns order according to the situation.

[madhu_vadlamani]

This message was moderated.

[Former Member]

Thanks Jignesh and Madhu

__A small clarification that is reference mondatory__

it this we can go for this.

Becasue the Customer will gives returns at his leasure i think

reference is not mandatory.

Pl confirm

[jignesh_mehta3]

Once again, that is as per your business requirement.

Ideally for Returns Credit Memo Reference to either Returns Order or Returns Delivery is advisable.

That will have sure of the accountability of person approving the Returns Credit & Document Traceability. This will also make sure that Goods are returned before Customer getting Returns Credit.

Thus in your case Reference Mandatory should be advisabble, because the Customer will get Returns Credit Memo only if he Returns the Goods.

Hope this helps,

Thanks,

Jignesh Mehta

[madhu_vadlamani]

Hi,

Credit Memo with respective to either Returns Order or Returns Delivery .then that will be accountable.

Regards,

Madhu.