This was explained in the Flow steps detailed in few referred threads. I am in a Refurbishment environment without serialization of materials. I believe that the material movements are better addressed when the Materials are serialized. In this environment tools like IE4N etc streamlines the material tracking. On the other hand where Refurbishment process where serialization is not there, the material mvt part as I observed is like this.
1.The item is in working and gets damaged
2.Customer is needed to create a C3 material in his/her store (mvt type 501 or 202)
3. Send it to Repairer's Defective store through MIGO or MB1B (mvt 311).
4. Repairer takes this to Order(GI) through MB11 (mvt 261)
5. Upon GR (IW8W) this C3 material converts into C2 and goes to inspection lot (mvt 101).
6. Upon UD, this material goes to Repairer's finished Store (mvt 321).
7. It is sent /taken back to customer store through MIGO or MB1B (mvt 311)
These are just guidelines. But it is very important to have FICO role in deciding these steps for the impact on Order costing. Few Companies do not prefer in Capitalizing the repairs like C2 value will be higher by settling the repair cost to material etc. They opt for Zero value of C3 and C2 materials. In such cases there are no financial implications. So, it is important to consult Finance team, MM team and take decisions on the above factors and document somewhere the things agreed upon before finalizing the processes like Refurbishment.
And consuming these refurbished material:
Once the C2 material arrives the customer's store, he/she should consume this through normal maintenance order through Reservation.
And when the material gets damaged the cycle begins from point2
This procedure (mvt types in point 2) should be suggested by your MM team. When zero valuation is there, many problems suppress automatically.
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