30 Replies Latest reply: Oct 2, 2012 11:24 PM by AA Roshan RSS

Resold process

AA Roshan
Currently Being Moderated

Hello All,

 

 

 

We are using MTO scenario.Customer asks for 100 m3 cement then customer returns only 10m3 back bcoz they dont need it now what we do we pour 90m3 cement in the remaining of 10m3 and make it 100m3 and then send to another customer.

 

Mat A . 100m3 cutomer ABC

 

Customer returns 10 m3

 

Now add 90m3 in 10m3 and make 100m3 and deliver to Customer DEF.

 

 

we have mto scenario and we have sales order stock now how to handle it . Please guide

  • Re: Resold process
    Narendra Konnipati
    Currently Being Moderated

    Hi,

     

    You can achieve this by  "Back Order Processing ". Please search in Google with this name.You can get so many threads .

     

     

     

    Thanks,

     

    Naren

    • Re: Resold process
      AA Roshan
      Currently Being Moderated

      Thanks for your answer but the issue is life of the cement is not more than 3 hours and we are doing MTO scenario. Cement expires in 2 hours. So how do i use back order processing in this scenario.

      • Re: Resold process
        Lakshmipathi G
        Currently Being Moderated

        For that, first you need to convert the special sale order stock to unrestricted for which,  if you try to create a return delivery against a return order, system will throw an error saying "Special Stock E not supported"

         

        For that, in OVZI, you have to change the settings for the item category in such a way that for REN,  1 should be assigned under the tab "Q".  Once you do this, system will allow you to do PGR.  After that again you have transfer the unrestricted to the new sale order stock and continue the subsequent process of PGI and invoice.


        G. Lakshmipathi

        • Re: Resold process
          AA Roshan
          Currently Being Moderated

          G Lakshmipathi you are great.  I was doing the process and got this error . Now i am adding this into the system. One More thing i need to clear is at the time of Sales Order i have ran Product Costing EK02. Now in this scenario what i suppose to do means two line items bcoz this item is costed.

          • Re: Resold process
            Lakshmipathi G
            Currently Being Moderated

            Not sure what would be the outcome.  May be you can try costing and update here how system behaves.  If you face any costing error, then may be you can post it in Financial forum.

             

             

            G. Lakshmipathi

            • Re: Resold process
              AA Roshan
              Currently Being Moderated

              Dear G Lakshmipathi

               

              I need a small help. Like as said earlier if my client return 10m3 what we do we fill 90m3 and send to another customer. Do we have any other solution for that. First we have to create Sales Return then Return Delivery then stock transfer then create another sales order then Production then delivery. This process is taking too much time. Do we have any quick solution for return process.

               

               

              Best Regards

              • Re: Resold process
                TW Typewriter
                Currently Being Moderated

                Few comments:

                 

                1. Good stock being returned by customer ABC - Here by having movement type 653, the material can directly be put in to unrestricted stock.

                This is correct as the stock is "salable stock and does not need inspection".

                 

                This can be achieved by having a separate schedule line category. Other possible settings are also possible.

                 

                2.RE order and delivery created together - In VOV8, field immediate delivery can be activated. This shall result in automatic creation of RE delivery, when RE order is created (similar to RO process, CS process)

                 

                3. Creation of new MTO - For customer DEF a new order SHOULD be created. This is needed for many things - billing, transfer of requirements, availability check, delivery to the correct ShipTo party address and (ofcourse) management reporting

                 

                4. You can automate the creation of RE credit memo and do some steps quicker (as mentioned above), but keep the basic process steps as below -

                 

                OR > Delivery > billing document > RE order > RE delivery > RE credit memo

                check updation of inventory (in unrestricted)

                 

                OR (for other customer) > Delivery > billing document.

                • Re: Resold process
                  AA Roshan
                  Currently Being Moderated

                  Thanks a Lot TW for detailed answers.

                   

                  The biggest issue is when they send 100M3 material to customer A and Customer Send Back 10M3 bcoz customer does not need it . What we do we fill 90M3 in 10M3 and Make it again 100M3 and transfer to another customer. Now it will only take not more then 20 minutes. The problem is if we follow standard procedure as you said

                   

                  "OR > Delivery > billing document > RE order > RE delivery > RE credit memo

                  check updation of inventory (in unrestricted)

                   

                  OR (for other customer) > Delivery > billing document."

                  Then it will take too much time . Do we have any other way around to tackle this issue.

                   

                  One more thing some times customer send back defected material Back now how to handle it into the system do i have to use the same process or any other . need help plzz

                   

                   

                  Best Regards

                  • Re: Resold process
                    TW Typewriter
                    Currently Being Moderated

                    1.

                    Then it will take too much time . Do we have any other way around to tackle this issue.

                    a) Keeping records in system:

                    If customer A has been billed for 100m3, thereafter he returns 10m3; money would have to be returned to this customer - this is done by RE credit memo.

                    The inventory has to be updated with + 10m3, for this RE delivery & PGR has to be done.

                     

                    b) The RE process administratively shall take maximum 10min.

                    These steps could be done later, with relevant papers. Later meaning after physical receipt of goods.

                    We used to do this in one of our companies. Real time was ahead of registering in the SAP system. Not recommended but can be done.

                     

                    c) KEEP SAP SYSTEM UPDATED and mirror image of your business. It is the right thing to do.

                     

                    d) Check other advantages and MUST, in my earlier post, point 3 (billing, transfer of requirements etc.)

                     

                    2.

                    some times customer send back defected material Back now how to handle it into the system do i have to use the same process or any other .

                     

                    The process would be DIFFERENT

                    a) When stock is OK : Use schedule line category e.g. CP with movement type 653 (stock to unrestricted)

                    b) When stock is defective: Use schedule line category e.g. ZP with movement type 651 (stock to restricted)

                     

                    The order entry staff can choose the schedule line category in the sales (RE) order - either CP or ZP.

                    These two schedule line categories can be maintained for the same item category in VOV5

                    in SchLC, MSLCa

                     

                    Side comment: Please read each point of my earlier post in detail. It might give you some options to configure your process.

                  • Re: Resold process
                    TW Typewriter
                    Currently Being Moderated

                    sd unknown,

                     

                    One question - Is a billing document already created for 100m3 and thereafter the customer returns 10m3?

                    If yes, the RE credit memo has to be created.

                    • Re: Resold process
                      AA Roshan
                      Currently Being Moderated

                      Sometimes wht happened customer says i dont want 10M3 bcoz i dont want it so take it back now sometimes customer pays at the time of order (Cash Customer) and sometimes after delivery.

                       

                      If i create Return Order wrt to Billing document then its difficult to trace bcoz customer paid for 100M3 and Customer returned bcoz customer does not need more . Now wht we do we add 90M3 in 10M3 and make it 100M3 and send to another customer.

                       

                      We have two types of customers Cash and Credit. Credit one usually bills after delivery but Cash Customer Pays at the time of Sales Order or Sometimes at Quotation Level.

                      • Re: Resold process
                        TW Typewriter
                        Currently Being Moderated

                        Please comment on the below points:

                         

                        1. Either Cash or Credit process - Does your company have to return the money for 10m3? (not used by customer, and returned to your company)

                        If yes, then this could be done by RE credit memo (billing document).

                         

                        2. RE order can be created with reference to Sales order or billing document. This depends upon the business process.

                         

                        3. Add 90m3 with 10m3, total 100m3 sell to other customer - For this an OTC cycle is needed or not?

                        • Re: Resold process
                          AA Roshan
                          Currently Being Moderated

                          1. Either Cash or Credit process - Does your company have to return the money for 10m3? (not used by customer, and returned to your company)

                          If yes, then this could be done by RE credit memo (billing document).

                           

                          RE Credit Memo means first i have to create Return Order then Credit memo or Delivery ?

                           

                          We have 2 types of Customers Credit Customers and Cash Customers. If Customer return the materials then company does not pay them back and if material is damaged then resend another quantity to the customer free of charge.

                           

                          2. RE order can be created with reference to Sales order or billing document. This depends upon the business process.

                           

                          What is the best way do i handle it with sales order or billing. If i handle it with billing then cash customers can be utilized bcoz they paid earlier. and for Credit Customers i think Sales order reference to Return Order. What do u say any suggestion...

                           

                           

                          3. Add 90m3 with 10m3, total 100m3 sell to other customer - For this an OTC cycle is needed or not?

                           

                          Right now they are doing on excel sheet change the values in excel sheets that's it.

                           

                           

                          I really Appreciate TW for your great support...

                           

                          Best Regards

                          • Re: Resold process
                            TW Typewriter
                            Currently Being Moderated

                            Important: Your company has to be clear about how much they would like to track / keep in excel sheets and how much they would like to track in SAP

                             

                            Numbering is related to above post

                             

                            1.

                            We have 2 types of Customers Credit Customers and Cash Customers. If Customer return the materials then company does not pay them back and if material is damaged then resend another quantity to the customer free of charge.

                             

                            a) Customer returns, no money to pay by company -

                            - Probably donot create RE order etc.

                            - directly manage the inventory

                            b) Customer returns damaged goods -

                            - Create RE order > RE delivering (stock to Quality Inspection by movt type 651) > PGR > RE credit memo

                            FD (with reference to RE order) > Delivery

                            (no billing in Free of charge process)

                            2.

                            What is the best way do i handle it with sales order or billing. If i handle it with billing then cash customers can be utilized bcoz they paid earlier. and for Credit Customers i think Sales order reference to Return Order.

                             

                             

                            Yes you can go for the above, but then you would need two different sales document types (ZRE1, ZRE2). Because field "Reference mandatory" can take only one value - either reference to sales order or reference to billing document.

                             

                            If the order quantity is ALWAYS the billed quantity, then you could go for with reference to ORDER for both Credit and Cash customers.

                            This would make configuration and end user (order entry) much easier and less errors - I recommend this.

                             

                            Message was edited by: T W updated content in blue font

                            • Re: Resold process
                              AA Roshan
                              Currently Being Moderated

                              Hello TW one more thing that i forget to tell you Here we are doing Double Sales means no credit memo in this scenario. we will do credit memo scenario once customer return our product. Here customer is giving just bcoz customer has no place so customer give us free. So here we do double sales.

                               

                               

                              Kindly help with this matter

                              • Re: Resold process
                                TW Typewriter
                                Currently Being Moderated

                                Could you please explain "Double sale" in more detail?

                                 

                                On the other hand, if in a process, for returns money is being returned to a customer, then you could have the RE process described above i.e.

                                RE order (with movement type 653, for stock to come in to unrestricted) > RE delivery and PGR > RE credit memo

                                • Re: Resold process
                                  AA Roshan
                                  Currently Being Moderated

                                  Ok what we are doing once we delivered the goods to the customer they returned back some material like if we are delivering 100M3 and customer sends back 10M3 just because they dont have place to store so we dont return any money and we add 90M3 in the remaining one and deliver to Customer. Now we are not giving them credit memo. I need return delivery from delivery

                                   

                                   

                                  LR from LO

                                   

                                   

                                  So here we are not issuing any memo bcoz its customer's wish they are returning material us back without any issue and money . And we do double sales.

                                   

                                   

                                  Hope u got wht i mean

                                   

                                   

                                  Best Regards

                                  • Re: Resold process
                                    Narendra Konnipati
                                    Currently Being Moderated

                                    Hi,

                                     

                                    Really ,Your Scenario was surprising me .

                                     

                                    1. We are doing once we delivered the goods to the customer they returned back some material.

                                     

                                    Once you Delivered the Goods to the customer if any any existing like damaging goods by that time ,the customer will back to send (material) them to company to get the new Materials.But here,your customer doesn't have a space that's why ,he send the goods to the company (This is not good for company at time customer also .Before giving orders ,he wants analyse how much space he had.

                                     

                                    2. Suppose ,Your customer Send back material 10M3 from 100M3 to Company,how you have assign 90M3 to 10 M3 (In your way if we add 90M3 to 10M3 what about 90M3quantity of  invoice money )  why because already that 10M3 Material has done invoice to the company.

                                     

                                    If you any issues please let me know.

                                     

                                     

                                    Thanks ,

                                    Naren

                                    • Re: Resold process
                                      AA Roshan
                                      Currently Being Moderated

                                      Thanks for the detailed answer. Once we create sales order let suppose 100M3 now we have delivery 100M3 and its our clients requirement that they want Approx 100M3 now what happens we bill for complete quantity which is 100M3 . Once delivery guy delivers the material that delivery guy say now client has no space left and customer send back 10M3 without any cost . we add 90M3 in the remaining 10M3 and deliver it to another customer.

                                      • Re: Resold process
                                        Narendra Konnipati
                                        Currently Being Moderated

                                        Hi,

                                         

                                        In this case ,you have to create/raise a Debit Note to Company for other Quantity 90M3 ( you added 90M3 Material to 10M3Material) on the based on delivery.

                                         

                                         

                                        Thanks,

                                         

                                        Naren

                                        • Re: Resold process
                                          AA Roshan
                                          Currently Being Moderated

                                          Did not get what you said. Means now for customer B i have to create debit note or what.

                                          • Re: Resold process
                                            Narendra Konnipati
                                            Currently Being Moderated

                                            Hi,

                                            Sorry gave wrong info in the previous thread.

                                             

                                            You added 90M3 material to 10M3 material to making as 100 M3 .But In this case only ,you have done invoice only for 10M3 not to 90M3 right.For 90M3,You have to raise a Debit Memo to collect money from Customer to Company.

                                             

                                            Please let me know if you have any queries.

                                             

                                             

                                            Thanks,

                                             

                                            Naren

                                            • Re: Resold process
                                              AA Roshan
                                              Currently Being Moderated

                                              Let me Explain.

                                               

                                              Customer (A)  Material QTY (100M3) Delivered 100 in agreement invoice should be of 100M3. Now due to space issue and material is not required by the customer what customer does he send 10M3 bcoz no place to store that material. Now what we do we take 10M3 from customer (no need to credit or debit its all in agreement that customer should pay full amount and its customer's own choice to return back and customer does not ask for money) and add 90M3 and make it 100M3  and deliver it to another customer B

                                               

                                              Customer A paid us = 100

                                              Material 100 price 100

                                              return    10M3 price 10

                                               

                                              Customer B paid us 100

                                              Material 90M3 + 10M3 (Returned one) = 100

                                               

                                              we will add 90M3 and 10M3 which will be 100 and amount is 100 means we got 10 rupees profit which we got from first customer now again i am sending to another customer and i will charge again on total quantity . This is double Sales . Now i am confused how to track this all in the system.

                                               

                                              Here 10M3 charged twice . got my point 1st customer paid whole amount but return 10M3 and another customer paid whole amount and we delivered the remaining and new one to another customer.

                                               

                                               

                                              Thanks and Regards

                                              • Re: Resold process
                                                Narendra Konnipati
                                                Currently Being Moderated

                                                Hi,

                                                 

                                                1. Customer (A) - - >got Quantity 100M3 from Comapny.

                                                 

                                                He will send 10M3 to the Company.This quantity10M3 will meet with 90M3 Quantity (already your Company had 90M3 right).I think ,if Customer (A) will ask any Quantity suppose 100 M3)  in the future,

                                                 

                                                Ex:  Customer (A) had already 10 M3,You will add 90M3 to 10 M3 and make a 100M3 round figure.

                                                 

                                                 

                                                2. Customer (B) - - >If Customer (B) will ask 100 M3,You will take from any existing quantity/returned quantity like 10 M3 to add 90 M3 (already your company had 90M3 Quantity) and make it as 100 M3 right.

                                                 

                                                Please conform the above process is correct or not.

                                                 

                                                 

                                                 

                                                Thanks,

                                                 

                                                Naren

                                              • Re: Resold process
                                                TW Typewriter
                                                Currently Being Moderated

                                                Here 10M3 charged twice . got my point 1st customer paid whole amount but return 10M3 and another customer paid whole amount and we delivered the remaining and new one to another customer.

                                                 

                                                To track this "double payment" better would be to go with option b in my earlier post -

                                                TW wrote:
                                                b. Create a copy of RE order (e.g. ZRE) with automatic creation of RE delivery (configuration settings in VOV8, field "immediate delivery", fields Order related billing and Delivery related billing should be BLANK). PGR, goods receipt to unrestricted stock (with movement type 653)

                                                Thus process would be ZRE > RE delivery

                                                (no billing)

                                                With the ZRE return order and order reason, you / user can track "quantity for which double payment is done".

                                  • Re: Resold process
                                    TW Typewriter
                                    Currently Being Moderated

                                    sd unknown,

                                     

                                    For RE without damage, because customer does not have storage space (e.g. to keep 10m3), there are 3 options -

                                     

                                    a. No not create any document in SAP

                                    b. Create a copy of RE order (e.g. ZRE) with automatic creation of RE delivery (configuration settings in VOV8, field "immediate delivery", fields Order related billing and Delivery related billing should be BLANK). PGR, goods receipt to unrestricted stock (with movement type 653)

                                    Thus process would be ZRE > RE delivery

                                    (no billing)

                                    c. Create a delivery without sales order, like LO delivery type

                                    Here settings of default order type in 0VLK (zeroVLK) would have to be done.

                                    With relevant item category settings (pricing, billing)

                                    With relevant schedule line category settings (movement type, no availability check and no transfer of requirements)

                                     

                                    I would go for either option b or a.

                                    • Re: Resold process
                                      AA Roshan
                                      Currently Being Moderated

                                      Thanks TW i was thinking its my opinion i might be wrong but is it possible in SAP that

                                       

                                      I have create SO then Delivery then Return delivery from delivery means

                                       

                                      1st option is this

                                       

                                      SO -> LO-> LR (with reference to LO)

                                       

                                      2nd option is this

                                       

                                      SO-> LO-> LR (without reference to LO)

                                       

                                      Because if i Left the fields blank of Order related billing and Delivery related billing . then how to do scenario in which customer return the goods due to defect/Damage.

                                       

                                      We have both scenarios .

                                       

                                      Customer return goods by his own wish without demanding for money.

                                      Customer return goods and asks for another Material which got damaged.

                                       

                                      In this scenario what to do ...

                                       

                                      Thanks all the efforts u people made...

                                      • Re: Resold process
                                        Narendra Konnipati
                                        Currently Being Moderated

                                        Hi,

                                         

                                        Why you shouldn't reply my last query?

                                         

                                        1. What do you mean by "LO" in your way ?LO is Delivery without reference of the Sales Order.In this case,we have to map the Copying Control between LO-F2.So,here No SO (Sales Order) present.

                                         

                                        2. "If any query posted in SCN Forum before just analysis,What Query I have posting in this "Globa Foruml."

                                         

                                        3. Why because So much users spending their Valuable Time on any Query.If you posted any query exactly,that doesn't take above 10 threads and also reduce Valuable Users Time .                                                                                                                                                                                                         4. I have encountered on your last thread but you didn't reply and again you have started to posting here where ever replies.

                                         

                                        This type of activity will take so much time to solve any issues.

                                         

                                        Thanks,

                                        Naren

                                      • Re: Resold process
                                        TW Typewriter
                                        Currently Being Moderated

                                        sd unknown,

                                         

                                        As mentioned above,

                                        For RE without damage, because customer does not have storage space (e.g. to keep 10m3), go for option b:

                                        b. Create a copy of RE order (e.g. ZRE) with automatic creation of RE delivery (configuration settings in VOV8, field "immediate delivery", fields Order related billing and Delivery related billing should be BLANK). PGR, goods receipt to unrestricted stock (with movement type 653)

                                        Thus process would be ZRE > RE delivery

                                        (no billing)

                                         

                                        Process flow -

                                        OR > Delivery > Billing document

                                        ZRE (with reference to OR) > ZLR (immediate creation of delivery document) > PGR

                                         

                                        In order to track the "double payment goods" ZRE would be appropriate, with Order reason.

                                         

                                         

                                        For RE with damage, company must give substitute material free of cost:

                                        As mentioned above:

                                        b) Customer returns damaged goods -

                                        - Create RE order > RE delivering (stock to Quality Inspection by movt type 651) > PGR > RE credit memo

                                        FD (with reference to RE order) > Delivery

                                        (no billing in Free of charge process)


                                         

                                        We have both scenarios .

                                         

                                        Customer return goods by his own wish without demanding for money.

                                        Customer return goods and asks for another Material which got damaged.

                                         

                                        In this scenario what to do ...

                                        I have suggested process steps for both the above business processes. Please read my posts and try to get a clear picture of the process steps for both business processes - This is called "The Realization phase"

                                        http://help.sap.com/saphelp_47x200/helpdata/en/48/623972d55a11d2bbf700105a5e5b3c/content.htm


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