7 Replies Latest reply: Jan 7, 2011 7:28 PM by Jose M Escolar RSS

free-of-charge subsequent delivery

Cat L
Currently Being Moderated

Hi experts,

 

"If the customer is to receive replacement goods, do not create a credit memo. You can enter a reason for rejection for the appropriate items in the return. You then create a free of charge subsequent delivery with reference to the return in order to send the replacement goods to the customer. "

(It comes from SAP help

http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm).

 

Got some questions about the above. Pls help to solve. Thx.

 

Q1: Does the process match SAP statement above, sales order -> outbound delivery -> invoice -> return order (to be rejected after PGR for return delivery) - return delivery (PGR) - free of charge subsequent delivery (to be created with reference to return order) - delivery (no invoce to be created)?

 

Q2: If the process is correct, how can the financial balance the value of returned goods, sales cost? Is it through the replacement goods? In my previous understanding, it's the must to create credit memo because return delivery has PGR.

 

Q3: What order type is used for free of charge subsequent delivery? It seems SAP help mentions FD while some one mentions SD.

  • Re: free-of-charge subsequent delivery
    Chandresh Parmar
    Currently Being Moderated

    > Q1: Does the process match SAP statement above, sales order -> outbound delivery -> invoice -> return order (to be rejected after PGR for return delivery) - return delivery (PGR) - free of charge subsequent delivery (to be created with reference to return order) - delivery (no invoce to be created)?

     

    Process flow should be sales order -> outbound delivery -> invoice -> return order (to be rejected after PGR for return delivery) - return delivery (PGR)

     

    Then w r to the sales return order : create sunsequent free of charge delivery

     

    > Q2: If the process is correct, how can the financial balance the value of returned goods, sales cost? Is it through the replacement goods? In my previous understanding, it's the must to create credit memo because return delivery has PGR.

     

    after PGR , credit memo may not be created w r to returns order as we are going to give him free fo charge delivery.

    Step 1 would also ahve reference of returns order while giving free fo charge delivery

     

     

    > Q3: What order type is used for free of charge subsequent delivery? It seems SAP help mentions FD while some one mentions SD.

     

    SD is order type for subsequent free of charge delivery ( where reference document is must)  wheareas FD is free of charge deliverey where refernce doc optional.

     

    Hope this sorts out quereis. Pls rwd points if helpful

     

    regards

    • Re: free-of-charge subsequent delivery
      Cat L
      Currently Being Moderated

      Hi Chandresh,

       

      First of all, many thanks for your valuable advice. I want to double confirm two things.

       

      One, should delivery be created against free-of-charge subsequent delivery finally? The other, is free-of-charge subsequent delivery created with reference to return order?

      • Re: free-of-charge subsequent delivery
        Sagar Wagh
        Currently Being Moderated

        Hi Cathy,

         

        >Q1: Does the process match SAP statement above, sales order -> outbound delivery -> invoice -> return order (to be rejected after PGR for return delivery) - return delivery (PGR) - free of charge subsequent delivery (to be created with reference to return order) - delivery (no invoce to be created)?

         

        > (to be rejected after PGR for return delivery) -

         

        What does this mean???

         

        Std Process is

         

        Sales Order - Delivery - Invoice - Return Sales Order (wrt sales order / billing document) - Return Del. (wrt Return Sales order ) - PGR - Credit Memo wrt Return Sales Order

         

        OR  (If not to create credit memo)

         

        Free Of Charge Sub. Deli. Doc. (which is sales doc.) wrt Return Sales Order / Original Sales Order - Standard Deli.(LF) - Proforma Invoice

         

        >Q2: If the process is correct, how can the financial balance the value of returned goods, sales cost? Is it through the replacement goods? In my previous understanding, it's the must to create credit memo because return delivery has PGR.

         

        It is not must to create credit memo unless the customer has asked for.

        Eg. if you have sold material worth Rs. 100/-, invoice is created. Here customer a/c is debited. Now, you do return sales order - return delivey. Till return delivery, no accounting posting take place as far as customer is concerned. (Material doc is created after PGR and then a/c doc is created where cost of goods is posted) So after PGR, if the cust wants, either you can create Credit Memo where you return the money (in this case Rs.100) to customer that he has already paid or you deliver the material free of charge.

         

        Only in case of Credit Memo, accounting takes place where customer a/c is credited. So there is reverse posting

        For free of charge del. there is no accounting posting taken place

         

         

        >Q3: What order type is used for free of charge subsequent delivery? It seems SAP help mentions FD while some one mentions SD.

         

        Both these Sales Doc. types are available in Std SAP system

         

        SD - is used for Subsequent Delivery Free of Charge that is created wrt Return Sales Order / Billing Document

        FD - is used when you want to give any free sample to the customer. Therefore it does not have any reference

         

         

        Hope you get some inputs

         

         

        regards,

        Sagar

        • Re: free-of-charge subsequent delivery
          Cat L
          Currently Being Moderated

          Hi Sagar,

           

          I quote some statements from SAP help in my first thread because I have questions about that. To clear it, I draft the order process. Now, I want further clarification.

           

          Q4: Since subsequent delivery is free of charge, why proforma invoice need to create? It's optional, right?

           

          Q5: If free-of-charge subseuquent delivery is needed, is return order just rejected after return delivery has PGR?

          • Re: free-of-charge subsequent delivery
            Sagar Wagh
            Currently Being Moderated

            > Q4: Since subsequent delivery is free of charge, why proforma invoice need to create? It's optional, right?

             

            Yes, you are right. It is very much optional.

             

            > Q5: If free-of-charge subseuquent delivery is needed, is return order just rejected after return delivery has PGR?

             

            It is the order reason and not the reason for rejection that we enter in Return Sales Order. So that we come to know the reason for taking material back. It is done so for future reference and again it is not compulsory but recommended.

             

            An order is rejected when you dont want to process it further.

             

            Hope you are clear now

             

            regards,

            Sagar

      • Re: free-of-charge subsequent delivery
        Sagar Wagh
        Currently Being Moderated

        > One, should delivery be created against free-of-charge subsequent delivery finally?

         

        Yes. You are right. You must create delivery doc. wrt Sub Free of Charge delivery doc. Std delivery type LF is used for the same.

         

         

        >The other, is free-of-charge subsequent delivery created with reference to return order?

         

        Yes. You are right again. Free-of-charge subsequent delivery is created with reference to return order. However, it is not mandatory

         

         

        regards,

        Sagar

  • Re: free-of-charge subsequent delivery
    Jose M Escolar
    Currently Being Moderated

    Dear all,

    Is there any way to post into CO (not PA) a FoC document, w/o reference to any Sales Document but a Service order in a replacement process (in example)?

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