Returns – comprehensive analysis
The chess grand masters analyze hundreds and hundreds of chess games!
Constant studying of threads will give SD consultants the much needed “richness and density”…making them better consultants!
Below is a list of threads related to Returns. Study these regularly, make notes, practice in IDES and with time, you will become a MASTER!
- Implementing RE process gives the most learning and experience! a new order type or a new item category. When you get an opportunity to create a new RE order type or item category grab it with both hands!
- Understand the processes before and after returns. After return order creation, there could be re delivery, re credit memo or SDF. For what business scenario should we design SDF?
- Flow of goods can be forward and backward (i.e. sale and return), document category is one of the important settings which determines how a process will behave, how data will be stored, how SAP will keep track of data. OTC and RE cannot be in the same sales order!
- For promotional sale, customer can not return the goods, below link – Design of promotional sale process. If copy control does not exist between sale and re process, then RE order cannot be created with reference. Understand copy control – at header and item levels.
- “Mixing and matching” document types of different processes. Example below ZCR (credit memo request) > ZRE (return billing type). This is not the way it should be configured
OTC and RE cannot be in the same sales order!
Functionality – Document category
Two delivery types in one sales order
Post go live, a temporary issue
Functionality – Reference mandatory
Understanding the issue – is it related to transaction data OR related to configuration?
Promotional sale, customer can not return the goods
Business process related ticket
How to handle “after” goods are returned to the company? Give credit to customer, supply the goods free of charge
Functionality – SDF, key configurations in SDF – no billing, delivery block, any pricing? , copy control related to creation of SDF order
ZCR > ZRE , not recommended
For credit memo process there is a dedicated billing type G2
- Understand for what business requirements you need a new/different RE order type and for what requirements you need a different item category.
change the item category in RE order, instead of the default item category – If re order is created with reference, then the particular re item category can populate automatically with copy control (item level). If re order created without reference, then manually the “correct” item category needs to be input (in place of default, coming from item category determination table T184)
Functionality – Billing relevance
3. Business does not want any major changes
Functionality – copy control
4. View selected Order reasons in VA01/2
Functionality – make order reason a “mandatory” field in RE process, useful for reporting
Userexit, concept of Ztable (important and used frequently)
Side comment: For a SD consultant to understand, identify the appropriate user exits that can be used for a requirement is very helpful.
- Visualize the flow of goods. Most of the times, business wants to have clear distinction between sales goods flow and re goods flows.
Functionality – Shipping condition for returns process
Discussed in point 3, below, configuration
6. Should returned goods be part of Salable stock or not?
Functionality – Movement type 651, 653
Important – DN is the schedule line category provided for return process, in standard. VOV6
7. Business process and enterprise setup
Functionality – Enterprise structure > assignment > Sales org, distribution channel to delivering plant. An important step in SD
8. Pricing – what components to refund to customer? should tax component be refunded? should freight be refunded?
Functionality – Pricing
Side comment: In every aspect of SD design/tickets, mentally check – is there any impact on pricing?
9. Flow of goods in return direction, to which plant should goods be returned?
Functionality – Delivering plant (receiving)
Good example of a business requirement
10. Quantity in return order, compared to quantity in sales cycle
11. (09Aug15 updated) 11 merged with 1
12. Functionality – Billing block
Generally in returns, credit, billing block is setup. Billing block can be setup at different levels (header, item) in RE order
Below thread touches on authorization also.
Important is to read the error message carefully, it gives clues, for solution
13. Functionality – REN, item category
(added on 08DEC2014) 14. Functionality – Billing (return credit note) created with reference to return delivery
(In standard, RE bill is created with ref. to RE order)
asked to include this. In few of my projects, companies have RE credit note created with ref. to RE delivery (and not order). There could be few business reasons to this process:
– The business would like to inspect the goods in their warehouse and then give refund, if applicable
– Quantity in delivery could be different from that in the RE order, so refund is given on the actual quantity that the business receives.
From configuration point,
14.1. copy control VTFL: RE delivery to RE bill is same as LF to F2,
and at item category level, copy control of REN is same as and item category TAN
14.2. item category REN, billing relevance should be A (delivery related billing)
Returns in standard SAP:
1. Return order created with reference to billing document
RE order can be created without reference or can be created with reference to sales order. But best practice is to create with reference to invoice
At item level of copy control configuration, pricing type is an important functionality – should prices be copied unchanged or any other way. The business requirement dictates pricing type. VTAF
2. Return document type
In several projects, I have noticed that field Reference mandatory has played an important role. Take note: when creating any custom reports, the SD document category is H, at transaction level, in order VBAK-VBTYP; at configuration level, in order type TVAK-VBTYP.
Different number ranges are given to RE orders, for easy recognition and reporting purposes. VOV8
3. Continuing with order type, shipping condition can play an important role. Also billing block given here, then in sales order, at header level billing block will be set automatically. Business has to remove the billing block from the sales order in order to create a RE credit memo. If business does not want to give RE credit note, then a reason for rejection can be put
4. Item category
In addition to field billing relevance, also note field Returns has to be activated for all return processes including credit memo, check G2N. VOV7
5. Schedule line category
Movement type is an important field. 653, 655, 657 Availability check and Transfer of Requirement has been deactivated, as these functionalities are not required for goods coming into the plant. VOV6
6. Delivery item category
The item category name REN remains the same in sales order, delivery and billing
Relevant for Picking in deactivated as goods are coming into the plant. Document category is T, sometimes needed for analysis in VTFA. 0VLP (zeroVLP)
7. Billing type
The RE credit can be cancelled, for that SAP standard cancellation billing type is S2. Additional requirements can be setup, conditions where cancellation is permitted in copying requirements. Does a company want the option to cancel the RE credit memo is a business decision. VOFA
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