How to process Equipment Trade-ins in SD

[Former Member]

Our Sales department will sometimes offer trade-in discounts to customers when they buy new equipment.  We sell our customers a new piece of equipment and the customer is returning their old piece of equipment.  We would like to be able to show this discount during the quoting, sales order, and invoicing processes as a separate line item.  The discount will not apply until we actually receive in the customer's old equipment.

Does SAP have standard line item/scheduling item categories that would apply to this scenario?

How should I handle the incoming customer equipment?  We will create an incoming delivery with reference to the sales order but will we need a service notification too?

I've seen one post about this (http://scn.sap.com/thread/1431192) but would really like more specific information or for someone to point me to some good documentation.

Thank you!  Any help is appreciated.

[former_member186385 · Accepted solution]

Hi Tami,

Service Notification creation is not a mandatory in your case

you can create fulfilment Order to send the equipment to customer Using consignment filup. Deliver the material to customer using consignment issue and normal billing with the full amount without discount  Now while taking return material, you can create consignment return by changing the new Equipment to Old equipment manually in return order and apply the discount . using return document you can create Credit memo to customer for applicable discount.

This is one way of mapping which can track entire process in your document flow

apart from the above you can also use standard alone process of return order and ensure discount is applicable only at return order level.

let us know if your process is different

thanks

santosh

[Former Member · Accepted solution]

Thank you Santosh.

I'm going to do some more investigation on your fulfillment order/consignment idea.  The customer would like to see the credit for their return on the invoice so in our ideal situation the customer would send their equipment back before we sent the new equipment to them and then the invoice would reflect the credit (discount) along with what they owe us for the new equipment.

Thank you for your response.  I will try to configure this scenario and bet back to you on how it works.

Tami

[Jelena]

Not an expert on this, but it looks like in this case devil is in the details and the solution could be either very simple or very complex depending on that.

There are multiple ways to show a discount on the quotation / order / invoice - e.g. as a discount condition or a separate item or, heck, even as a text note. But what exactly are the requirements as far as inventory, accounting and business process goes? Will you only send new items to the customer when you receive the new one or will you send new item anyway and then the customer may or may not do trade-in (and billing would need to be adjusted)? Do you need to account for the trade-in item in the inventory? What GL postings need to take place? What reports could be needed on trade-in sales? It's important to evaluate all these aspects to make the best decision.

[Former Member]

You are correct Jelena.  I am just starting to go down this path wondering how they wanted the incoming product to affect our inventory and what value it would come in as, etc.  I will be doing some more requirements gathering.

Thank you.

[Former Member]

This message was moderated.