Return order

[former_member546322]

Hi,

I want to understand, while creating return order with reference to Invoice the plant should flow from Invoice or from Customer Master.

to add CMIR is not maintained.

if it should flow from invoice then, In my case it is taking customer master as prefrence for which we do not want to do return delivery.

Kindly suggest what can be done to keep plant to copy from reference document and not from other sourse.

Thanks

[Lakshmipathi · Accepted solution]

I want to understand, while creating return order with reference to Invoice the plant should flow from Invoice or from Customer Master.

Return Order will copy all data from preceding document unless you have a zee routine assigned with different controls.  Also ensure no exit is in place.

G. Lakshmipathi

[Former Member · Accepted solution]

Guys think of transfer pricing and which country has the cheapest tax rate!!  This is why Hong Kong has become a base for export operations.

I had a client before where the returns were also sent back to a local Asia plant for repair and future sales in the market around Singapore.  I think it was just based on the size of product (mobile phone component) compared to freight costs for returing it back to Japan / China.

Regards

Waza

[former_member184080]

Hi Rahul.

Its a really a strange requirement and not a best practice or process. Legally, when you issue the goods from one plant, the returns also should come to the same plant.Otherwise, how do you do the inventory valuation? Whats the accounts for the return stock?

Second, yes standard SAP will take the plant from reference document. Its because the issue plant is already being captured in reference document.

Third, When you create the billing document the plant would be same as your customer master? If so, how can  you have a different plant at the time of returns.

Please provide us the complete business requirement so that we can help you with some solutions if any.

Regards, Sai Krishna.

[former_member546322]

Hi Sai,

I agree with you that Plant should come from refrence document in case of return order but In my case it is coming from customer master. So I want to understand is this because of some zee customization or this is also a sap standard functionallity.

Kindly let me know on this.

Thanks

[former_member182378]

Sai,

Its a really a strange requirement and not a best practice or process. Legally, when you issue the goods from one plant, the returns also should come to the same plant.Otherwise, how do you do the inventory valuation? Whats the accounts for the return stock?

I think, the returns are delivered to the same plant (which initially delivered the goods) or a different plant depends upon the business process(es).

Why would "inventory valuation" and "accounts" get impacted negatively, if the plant to which goods are returned is different from the plant which initially delivered the goods?

[former_member184080]

Hi TW,

I am waiting for someone to raise this.. As usual you are back

If you look at my reply: I said its not best practice to take the returns to a different plant. I have seen many companies who may go for different SLOC for returns or you will have QI for returns.

Please see the below SAP Help link on Inventory valuation, i am sure you know this but, You will comeup with a different approach.

http://help.sap.com/saphelp_46c/helpdata/en/ff/515fab49d811d182b80000e829fbfe/content.htm

Regards, Sai Krishna.

[Lakshmipathi]

I agree with you Sai that the best approach is returns should be taken by the parent plant and not by the alternate plant.  Since predominently I worked with couple of manufacturing industries, I would like to cite this industry as the best example for the query raised.  If you take the manufacturing industries where both Excise and Tax are involved, manufacturers are suppose to show the returns in the plant, from where it has originally been despatched especially from Excise point of  view.

G. Lakshmipathi

[former_member182378]

Sai, G Lakshmipathi,

Thank you for your posts!

Sai,

The link you provided gives more information about Inventory valuation.

In other words, we can ascertain different values to different stock / inventory based on many criteria.

But your question

how do you do the inventory valuation? 

What is stopping us from valuating inventory if the plant to which goods are returned is different from the plant which initially delivered the goods?

[former_member184080]

Hi TW,

Yes, it will not stop you for Inventory valuation. But, If i am not wrong few companies does the Inventory valuation at Plant level. At the end you have at Company code level for your Balance sheet. By keeping this in mind, I highlighted above point.

You are always welcome to give your ideas and correct our understanding.

Regards, Sai Krishna.

[former_member184555]

Its a really a strange requirement and not a best practice or process. Legally, when you issue the goods from one plant, the returns also should come to the same plant.Otherwise, how do you do the inventory valuation? Whats the accounts for the return stock?
I think, the returns are delivered to the same plant (which initially delivered the goods) or a different plant depends upon the business process(es).
Why would "inventory valuation" and "accounts" get impacted negatively, if the plant to which goods are returned is different from the plant which initially delivered the goods?

Completely agree with TW. It is not strange to take the returns in a different plant. It all depends on the business process. Also, I couldn't understand the legal binding in this process.

Regards,

Ravi Sankar

[former_member184080]

Dear Ravi Sankar,

Could you please provide any such examples from your experience where the returns have taken into a different plant. I would like to know the process so that I can add in my note.

Now, Legal impact you can get it from Lakshmipathi's reply.

I agree with you Sai that the best approach is returns should be taken by the parent plant and not by the alternate plant.  Since predominently I worked with couple of manufacturing industries, I would like to cite this industry as the best example for the query raised.  If you take the manufacturing industries where both Excise and Tax are involved, manufacturers are suppose to show the returns in the plant, from where it has originally been despatched especially from Excise point of  view.

I am very much happy that you are giving your views this.

Regards, Sai krishna.

[former_member184555]

Dear Sai,

When the business has many delivering plants and when the products returned requires many quality checks and minor re processing activities, and if setting up these teams at each delivering plant is not economical and not feasible, the business will accept all the returns to a plant designated for returns.

Regards,

Ravi Sankar

[moazzam_ali]

Dear

Plant always comes from customer master or material master or info record. It is standard behavior and recommended by SAP. If you want to copy plant from reference document then you can try with copying routine. Can you share in which field plant is stored in invoice? Right now I have no access to my system so thats why I am asking this.

Thank$

[Former Member]

HI Moazzam,

I may be wrong but I have already tried scenario Rahul is talking about. In return process, system copies plant from VBRP-WERKS and does not redetermine from master record.

Let us take an example, suppose in billing doc. plant was determined as ABCD and in customer record as well it is maintained as ABCD. Now, I have changed plant in customer master to 1234. When I try to create SO or Return sales order w/o any reference system determines plant as 1234 but when I created return SO w.r.t. to billing, system is showing plant as ABCD. Copying routine maintained is 153 or 151(I am not sure exactly) which is standard.

Please let me know if I am missing anything here.

Thanks,

Manish

[former_member184080]

Hi Rahul,

As i explained, still logically system should pick up the original Plant even you change in customer master. Reasonbeing, you have delivered from "X" plant and returns also should flow into "X". Could you please check with business as to why they want to account into a different plant?

You can also check with your FI consultant on the impact of this change.

Anyway, standard SAP has the data transfer routine 153 for returns order copy from billing document. If you still wants to consider the latest plant from customer master then you have to have new customized routine with logic of picking up the plant from customer master (Which is not correct according to my knowledge).

@experts: Please correct me if my understanding is wrong.

Regards, Sai krishna.

[Former Member]

HI Rahul,

I think as per standard SAP setting, Plant should be copied from reference document only. I tried this in my system by assigning different plant in customer master than the one in billing doc. and when i created sales order w.r.t. to billing doc. system copied plant from billing and did not determine from customer master. I believe this is generally based on what Data transfer routine you have maintained in VTAF at item level.

Further, as per business point of view, I did not understand your requirement because I think your billing document must be showing plant which is maintained in customer master then how does it matter how system is determining plant because customer master and billing doc should have same plant, right?

I hope it will help you and please let me know if i have misunderstood your requirement.

Thanks,

Manish