Returns Handling

A return order will be created when a customer returns the goods due to some damage, error in deliveries or error in orders etc. The returned goods will be stored in a separate stock and after quality inspection as per the customer requirement either we can issue a credit memo or a subsequent delivery free of charge.

The process flow in Returns Handling

1)      When the customer returns the goods you can create a Return order with reference to the original sales order or invoice corresponding to which goods are returned. You can use the Sales document type “RE” for creating the return order.

2)      Followed by that an inbound delivery will be created for the return order and a Goods Receipt will be posted.

3)      After the goods receipt a quality inspection of the returned goods will done to check the eligibility of the complaint and a usage decision will be made.

4)      Generally the return order is automatically blocked for billing. A credit memo or a subsequent delivery free of charge will be created only when an authorized person remove the billing block after checking the returned goods.

5)      If the customer wants to have the corresponding amount refunded, you can create a credit memo with reference to the return. During posting of the billing documents (credit memo or debit memo) the required accounting documents are created. By doing so, the correct amounts are debited or credited against the customer's account.

6)      You can create a credit and debit memos either with reference to credit or debit memo requests (sales documents), or - if your company does not require a release procedure in the case complaints then directly with reference to a billing document (as of Release 4.5).

7)      If the customer wants the goods to be replaced, then you can create subsequent delivery free of charge with reference to the return. The sales document type for subsequent delivery free of charge is SDF. By activating a delivery block in the sales document type, you ensure that a subsequent delivery free-of-charge transaction is not released for delivery until they have been checked by the relevant employee.

8)      In customizing at item categories you can set that the items in a subsequent delivery free-of-charge is not relevant for billing

Invoice correction request

An invoice correction request is always created with reference to an incorrect invoice document. You can use the invoice correction to carry out corrections to quantities or values that have already been invoiced to the customer.

Invoice correction procedure

1)      In the first step system will create a credit memo item and a debit memo item for every item in the incorrect billing document.

2)      At the start of processing the net value of the document is zero. In the document all credit memo items are listed and then all debit memo items.

3)      You can make the corrections only for the debit memo items. The credited net values results in a difference between the credit memo items and the debit memo items, and based upon that you can either issue a credit or debit memo to the customer.

4)      Credit memo and debit memo items are always deleted in pairs. You can delete all item pairs that doesn’t require any change.