Sample Document flow of Customer Return with Credit memo would look as shown below:
Companies often want to support selling and returning of multiple products bundled into a sales kit (example selling a PC together with monitor, keyboard, computer mouse, and so on). With Kit Products in SAP Business ByDesign you can group multiple items from your inventory and sell them together as a sales kit along with support of return process, this gives companies complete consistency and process integrity from Order to Invoice to Return. as part of SAP Business ByDesign 2005 release new feature enables customers to Return Kit Products.
User Story: If you sell kits in your business, you want to receive returns also in the form of kits as a whole (in addition to single kit items) and credit it to your customers in accordance to the invoice. In case of repair, you want to send the products back to the customers as a whole set.
Capabilities
Benefits for Customers
Return kit products with credit memos considering pricing in original invoice.
Details:
The Customer Return Management with Kit Product in SAP Business ByDesign 2005 release enables companies to process the inbound delivery of kit products returned by a customer for a replacement, a credit for the returned goods or for repair. SAP Business ByDesign supports the entire customer returns management cycle with kit products - from delivery notification and the physical product return through to payment based on a credit memo.
You can increase customer loyalty with efficient returns processes.
Key Benefits include:
Customer Return with kit products is how you manage kit products that are returned by customers. It could be through a standard customer sales process or an over-the counter sale.
Process flow of kit returns in SAP Business ByDesign can be depicted as shown below.
The Processing Customer Return Notifications with kit products process comprises the creation and use of customer return notification (CRN). An CRN represents a inbound delivery coming from outside. An IDN (Inbound Delivery Notification) of delivery type Customer Return usually precedes a standard customer sales process or over-the-counter sales process. In CRN there could be two options based on follow-up activity value set to “Post to Own Stock” or “Repair at Own Service Center” for returned kit product.
The Processing Inbound Delivery with kit products processes confirmations to receive the products in the warehouse and post them to own stock or to an externally-owned stock (for returns to repair goods).
The Processing Customer Return with kit products process enables you to handle customer returns. Normally the process starts when ordered and shipped products are returned by the customer. After the inbound delivery is completed, you recognize a new return and initiate a confirmation form to be sent to the customer to inform him or her about the goods receipt. At this point, you can check the content of the return, such as picked quantity, quality loss fee, notes, and return references.
In sales related scenarios, you can add an internal note or some information for the customer to be printed on the credit memo and also adjust pricing relevant parameters, for example, quantity to be invoiced, restocking fee, quality loss fee, and freight. Finally, you have to request a credit memo or trigger compensation delivery (without credit memo).
A return process in a service context, is indicated by the type Repair at Own Service Center, and by assigning the current externally-owned stock quantity, along with an option to request an outbound delivery along with service order related to the repair work of the kit product.
The Creating Customer Credit Memo with kit products business process enables you to create and handle credit memos. After you perform a goods return, the system automatically creates credit memo invoice requests that you must transfer to a credit memo invoice which is then sent to the customer. The credit memo is also passed to cash flow management in order to trigger the related payment, for example by check, bank transfer, or credit card. This transfer can be done using an invoice run, or manually. It is possible to combine several invoice requests into one credit memo or split them into several credit memos. You can also create a credit memo manually.
The Processing Receivables and Payments with Accounts Maintenance - Standard business process enables you to monitor customer accounts on a regular basis. You can clear any remaining open items and write off small differences manually.
Use Cases:
A kit products return could be created for following use cases:
We will explain the significance of different follow-up activities and how it is used in different business scenario.
Return Without Credit Memo
Standard order customer return with kit product: The follow-up activity to be chosen at the time of new customer return notification is “post to own stock”.
Note : When you release your return you should choose “Without Credit Memo” such that a replacement sales order can be created from a customer return. In case of replacement use case if the returned kit product is damaged then user will add quality loss fee and restocking fee in the return document and user will not create replacement sales order.
Return With Credit Memo
Standard order customer return with kit product: The follow-up activity to be chosen at the time of new customer return notification is “post to own stock”.
Note : When you release your return you should choose “With Credit Memo” such that a credit memo is created in Customer Relationship Management and a refund is triggered.
Repair (Return with Service Order and Outbound Delivery)
The follow-up activity to be chosen at the time of new customer return notification for kit product is “Repair at Own Service Center”.
Once repair is performed and when item is ready to be shipped you can assign a service order as a reference document and trigger an outbound delivery to return to the customer.
Note : The system sets the externally-owned stock indicator, meaning that the goods still belongs to the customer while residing on your premises.
Sample Document flow of Customer Return with Credit memo would look as shown below:
User Story: If you sell kits in your business, you want to receive returns also in the form of kits as a whole (in addition to single kit items) and credit it to your customers in accordance to the invoice. In case of repair, you want to send the products back to the customers as a whole set.
Capabilities
- Create customer return notifications for a kit product, with reference (or without) to the existing documents with the option
- To post it to own stock or
- To receive it for repair
- In case of a return to own stock and after acceptance of the credit memo
- Pricing from referenced invoice is considered, if needed refinement is possible.
- Revenue is reduced in finance and the relations to kit header and sales order are passed to profitability analysis
- In case of a repair, the outbound delivery back to customer contains also the kit header
Benefits for Customers
Return kit products with credit memos considering pricing in original invoice.
Details:
The Customer Return Management with Kit Product in SAP Business ByDesign 2005 release enables companies to process the inbound delivery of kit products returned by a customer for a replacement, a credit for the returned goods or for repair. SAP Business ByDesign supports the entire customer returns management cycle with kit products - from delivery notification and the physical product return through to payment based on a credit memo.
You can increase customer loyalty with efficient returns processes.
Key Benefits include:
- Well-managed returns can translate into sales opportunities
- Tracking allows companies to stay on top of each return by monitoring its logistics and refunding status, and the corresponding logistics and financial documents
- Better transparency, enabled by adherence to applicable business rules, allows you to provide accurate Information for customer queries
- By identifying the reasons for returns, quality is improved
- Using return sales rate reports that show the return rate for each month of the current year helps you to monitor quality levels
Customer Return with kit products is how you manage kit products that are returned by customers. It could be through a standard customer sales process or an over-the counter sale.
Process flow of kit returns in SAP Business ByDesign can be depicted as shown below.
The Processing Customer Return Notifications with kit products process comprises the creation and use of customer return notification (CRN). An CRN represents a inbound delivery coming from outside. An IDN (Inbound Delivery Notification) of delivery type Customer Return usually precedes a standard customer sales process or over-the-counter sales process. In CRN there could be two options based on follow-up activity value set to “Post to Own Stock” or “Repair at Own Service Center” for returned kit product.
The Processing Inbound Delivery with kit products processes confirmations to receive the products in the warehouse and post them to own stock or to an externally-owned stock (for returns to repair goods).
The Processing Customer Return with kit products process enables you to handle customer returns. Normally the process starts when ordered and shipped products are returned by the customer. After the inbound delivery is completed, you recognize a new return and initiate a confirmation form to be sent to the customer to inform him or her about the goods receipt. At this point, you can check the content of the return, such as picked quantity, quality loss fee, notes, and return references.
In sales related scenarios, you can add an internal note or some information for the customer to be printed on the credit memo and also adjust pricing relevant parameters, for example, quantity to be invoiced, restocking fee, quality loss fee, and freight. Finally, you have to request a credit memo or trigger compensation delivery (without credit memo).
A return process in a service context, is indicated by the type Repair at Own Service Center, and by assigning the current externally-owned stock quantity, along with an option to request an outbound delivery along with service order related to the repair work of the kit product.
The Creating Customer Credit Memo with kit products business process enables you to create and handle credit memos. After you perform a goods return, the system automatically creates credit memo invoice requests that you must transfer to a credit memo invoice which is then sent to the customer. The credit memo is also passed to cash flow management in order to trigger the related payment, for example by check, bank transfer, or credit card. This transfer can be done using an invoice run, or manually. It is possible to combine several invoice requests into one credit memo or split them into several credit memos. You can also create a credit memo manually.
The Processing Receivables and Payments with Accounts Maintenance - Standard business process enables you to monitor customer accounts on a regular basis. You can clear any remaining open items and write off small differences manually.
Use Cases:
A kit products return could be created for following use cases:
- Return Without Credit Memo
- Return With Credit Memo
- Repair
We will explain the significance of different follow-up activities and how it is used in different business scenario.
Return Without Credit Memo
Standard order customer return with kit product: The follow-up activity to be chosen at the time of new customer return notification is “post to own stock”.
Note : When you release your return you should choose “Without Credit Memo” such that a replacement sales order can be created from a customer return. In case of replacement use case if the returned kit product is damaged then user will add quality loss fee and restocking fee in the return document and user will not create replacement sales order.
Return With Credit Memo
Standard order customer return with kit product: The follow-up activity to be chosen at the time of new customer return notification is “post to own stock”.
Note : When you release your return you should choose “With Credit Memo” such that a credit memo is created in Customer Relationship Management and a refund is triggered.
Repair (Return with Service Order and Outbound Delivery)
The follow-up activity to be chosen at the time of new customer return notification for kit product is “Repair at Own Service Center”.
Once repair is performed and when item is ready to be shipped you can assign a service order as a reference document and trigger an outbound delivery to return to the customer.
Note : The system sets the externally-owned stock indicator, meaning that the goods still belongs to the customer while residing on your premises.
Sample Document flow of Customer Return with Credit memo would look as shown below:
- SAP Managed Tags:
