Advanced Customer Return management with Material replacement in SAP S/4HANA on Premise SD fiori
Advanced Customer Return management with Material replacement in SAP S/4HANA on Premise SD fiori
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Creating the Advanced Return order which generates the Customer RMA number automatically with specifying the details about refund or replacement of material required.
Return delivery also created automatically and PGR need to be done for receiving the goods from customer then Quality Inspection team will do the inspection of the received material and release the free of charge replacement material to customer via automatically created SDF (Subsequent Delivery free of charge) document in SAP S/4 HANA 2021 system.
There are many other features in Advanced return management except replacement material like complete refund, partial refund, Inspection already done when placing return order, etc. which is also explained below.
Activate Advanced return management for return order type:
In Customizing for Sales and Distribution, choose > Sales > Advanced Returns Management > Activate Advanced return management for Return Order Types
Activate Advanced Returns Management for Returns Order Types
In this IMG activity, you activate Advanced Returns Management for returns order types, in other words the sales document types that represent returns ( document category H Returns).
For activated returns order types, you can also specify further settings for the Advanced Returns Management business process.
You have defined sales document types for which you want to activate Advanced Returns Management. You do this in IMG activity Define Sales Document Types.
Advanced Returns Management is active for returns order type RE2 by default.
When you execute the IMG activity, the system displays all defined returns order types.
Proceed as follows:
1. Select Advanced Returns Active if you want to activate Advanced Returns Management for a returns order type.
2. Specify the additional settings for Advanced Returns Management for the activated order type.
The additional settings are irrelevant if you do not activate the returns order type.
Scenario: Wrong material sent (or any other reason) to customer and customer want replacement of the material.
Create Advanced return Order:
There is a specific tab “Returns” where all the details regarding advanced return need to be entered.
Refund Type: You can choose refund type accordingly that you want to give replacement material to customer or refund for the material.
If you want to give refund then you can also choose how much refund need to be processed by Refund Code field:
After choosing Refund Type – You have to select Refund Control to specify when replacement material (or credit memo) will be sent to customer.
You can mention the Replacement material which you want to send with its quantity and supplying plant.
Available quantity will be shown in the same screen as per the material entered as replacement material and supplying plant.
• Choose I Immediately or P Approved if you want to create a subsequent delivery free of charge (SDF) right away. This process depends on whether or not you have already received the material. If you choose I Immediately, the system also creates the delivery for the SDF and posts the respective goods issue.
• Choose R By Credit Memo Request or A After Receipt of Credit Memo if you want to postpone the decision regarding a return to a later time. You can then release an SDF in the Material Inspection in Warehouse transaction and the Customer Return Determination transaction. The refunding type – Replacement Material that is specified in the returns order is displayed in both of these transactions so that the person making the next decision knows that the customer would like a replacement material. You can only use refund control A if you specify a logistical follow-up activity in which the material is sent to an external vendor or is transferred to a plant with a different company code.
Follow – up Action need to be chosen to get the material from customer and send it to respective locations:
Follow-Up Activity Code Default Description of Logistical Follow-Up Activity Meaning
0001 Receive into Plant Returned materials are posted to the returns warehouse (usually to blocked stock).
0002 Immediately Move to Free Available Stock Returned materials are posted to unrestricted-use stock (usually with stock type Unrestricted-Use Stock).
0003 Immediately Move to Scrap Returned materials are temporarily posted to returns stock and then a goods issue is posted to scrap.
0004 Ship to Other Plant Returned materials are sent to another plant. The materials are posted to returns stock first.
0005 Ship to Vendor Returned materials are sent to an external vendor. The materials are posted to returns stock first.
0006 Ship to Vendor Via Other Plant Returned materials are sent to an external vendor via another plant. The materials are posted to returns stock first.
0007 Direct Shipment to Vendor The customer sends the return material directly to an external vendor without returning it to your company.
0008 Inspection at Customer Site You choose this activity if you want to inspect the material at the customer site before it is returned. Once you have the inspection results, you decide whether the material should be sent back or if it should remain with the customer. To do so, you change the logistical follow-up activity in the returns order.
0009 Delivery into Plant — Materials Still Unknown Choose this activity if you cannot exactly specify the materials and quantities to be returned. A returns delivery is posted and when the goods are physically received, you can update the returns order with the returned materials.
0013 Material Remains at Customer Site Choose this activity if you decide after the inspection at the customer site that the material should stay with the customer. It might be scrapped there, for example. The customer can be refunded in the usual way.
0014 Immediately Move to Specified Stock The returned material is posted to a specific kind of stock (such as stock for second-grade goods).
0016 In-House Repair An in-house repair is triggered for the returned material using a corresponding repair order. You can configure an automatic goods movement from the returns stock to the repair order stock.
0017 External Repair An external repair is triggered for the returned material using a corresponding repair order. You can configure an automatic goods movement from the returns stock to the repair order stock.
0021 Send Back to Customer Returned materials are sent back to the customer.
You can deactivate any unnecessary logistical follow-up activities in Customizing for Advanced Returns Management by choose > Sales > Advanced Returns Management > Activate and Rename Follow-Up Activities . You can also replace the default descriptions of the follow-up activity codes with your own descriptions.
Activate and Rename Follow-Up Activities
In this IMG activity, you define which logistical follow-up activities you want to use in Advanced Returns Management. You can also enter your own descriptions for the follow-up activities.
All logistical follow-up activities are active by default.
The system uses the standard activity description for the logistical follow-up activities.
1. Deselect those logistical follow-up activities that you do not want to use.
2. Enter your own description for those logistical follow-up activities that you want to rename.
If you have already received the returned material when you enter the returns order (because it was returned at the counter, for example), you can enter the inspection results directly in the returns order.
You have not chosen this option in our current scenario and Quality inspection team will do the inspection after receiving the product from customer.
Save the return order after below entries in Return tab.
Check the return Order and Customer RMA number created automatically which is used between Customer and Client as unique number which will flow in all the documents for tracking purpose.
Specifies whether a customer returns order is to be blocked pending approval.
The further processing of a returns order is blocked if the user who is creating or modifying the returns order is not authorized to do so for the receiving plant. The system sets the block to Blocked for Release.
If the authorized user at the next receiving plant does not approve the order, he or she can set the blodk to Item to Be Revised.
Advanced return delivery is also created automatically:
PGR need to be done for receiving the goods in our premises.
You can check the complete flow of Advance return management from Returns Overview button present in Return tab of Return order.
After Goods Receipt,
Inspection need to be done and if item is okay then Quality inspection team need to release the Subsequent delivery free of charge (SDF) for the customer to send replaced material.
Run the transaction: MSR_INSPWH : TILE Enter Inspection Results – From Warehouse and enter the customer RMA number in the selection screen (or other details can be entered).
This function allows you to record the results of a material inspection that was carried out on returned materials received into your warehouse. Based on these results, you can specify logistical follow-up activities and trigger refunding. The system then creates the necessary follow-up documents.
You record the results of an inspection that you carried out for returned materials that were received in your warehouse. You enter the inspection results with reference to the returns delivery that was created for the returns order. You can select more than one returns delivery that requires inspection and put them in a worklist. Inspection data includes the inspection code, an inspection comment, the inspector, and the inspection date. It is also possible to upload a local file to document the inspection. You can enter inspection data at header or item level, or you can split delivery items if different results are to be recorded for subquantities.
Inspection results can be used as the basis for determining the appropriate logistical follow-up activity and triggering the customer refund.
• Release the SDF document.
Material is okay, otherwise in Follow-up activity – you can choose options like In-house repair needed, etc. (If this activity is activated which is explained above).
• Click on Save & confirm button.
Create delivery & PGI for Subsequent delivery FOC document:
Same RMA number also copied to SDF:
100% discount applied to SDF:
Create delivery and PGI.
Return Overview of return order:
All processing statuses are now completed and all the lights are green.
Conclusion: All the clients were using old Return management process until now and linking the Quality inspection, manually creating Free of charge sales orders for sending replacement material and checking the availability of that material by calling different transactions or manually creating credit memo for refund, manually adjusting the price to be provided in refund as per the result of quality inspection, etc.
All these manual tasks can be managed under Advanced return management automatically.