Customer Return Management

Scenario Overview
Click process
chevrons for details

Order-to-Cash
(Sell-from-Stock)
Order-to-Cash (with
Specified Products)

Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Processing
Customer
Return

Order-to-Cash (Third-Party
Order Processing Material)
Over-the-Counter Sales

Processing
Receivables
and
Payments

Creating
Customer
Credit Memo

Order-to-Cash
(Sell-from-Stock)

Processing
Inspections

Service and Repair

Order-to-Cash
(with Specified Products)
Order-to-Cash (Third-Party Order
Processing Material)
Over-the-Counter Sales
Service and Repair

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow

Scenario Description

Open Legend

The Customer Return Management business scenario enables you

to process the inbound delivery of physical goods returned by a
customer for a replacement, a credit for the returned goods or for
repair.
There are also functions for:
Collaboration between warehouse and sales or customer service
The return processing includes late updates of inbound deliveries,
as well as transferring notes and attachments from warehouse to
the return documents.

Return confirmation to customer

The form-based confirmation to a customer in order to inform
a customer about goods receipt, references, and contacts.
Creating and approval for credit memo
The creation of a credit memo and the option to introduce an
approval process with thresholds.
Pricing
The restocking and quality loss fee as pricing conditions help
to level or refine the amount for compensation.

Outbound delivery in case of returns received for repair at own

service center.

Further Information
The following business roles are involved in this scenario:

2013 SAP AG. All rights reserved.

Warehouse
Operator

Sales
Representative

Accounts
Receivable
Accountant

Service
Planner/
Dispatcher

Customer Return Management

Scenario Overview
Click process
chevrons for details

Order-to-Cash
(Sell-from-Stock)
Order-to-Cash (with
Specified Products)

Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Processing
Customer
Return

Order-to-Cash (Third-Party
Order Processing Material)
Over-the-Counter Sales

Processing
Receivables
and
Payments

Creating
Customer
Credit Memo

Order-to-Cash
(Sell-from-Stock)

Processing
Inspections

Service and Repair

Order-to-Cash
(with Specified Products)
Order-to-Cash (Third-Party Order
Processing Material)
Over-the-Counter Sales
Service and Repair

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow

Scenario Description

Legend

The Customer Return Management business scenario enables you

to process the inbound delivery of physical goods returned by a
customer for a replacement, a credit for the returned goods or for
repair.
There are also functions for:
Collaboration between warehouse and sales or customer service
The return processing includes late updates of inbound deliveries,
as well as transferring notes and attachments from warehouse to
the return documents.
Outbound delivery in case of returns received for repair at own
service center.

Return confirmation to customer

The form-based confirmation
to mainly
a customer
to inform
Process
driven in
by order
the user
a customer about goods receipt, references, and contacts.
Process
Creating and approval for
creditmainly
memodriven by the system
The creation of a credit memo and the option to introduce an
Manual process not supported by the
approval process with thresholds.
system

Pricing
The restocking and quality
loss that
fee as
pricing conditions
help
Process
communicates
with thirdto level or refine the amount
compensation.
party for
software
(mouse-over for details)
Process with relevance to Financials

Further Information

Related scenario

The following business roles are involved in this scenario:

2013 SAP AG. All rights reserved.

Warehouse
Operator

Sales
Representative

Accounts
Receivable
Accountant

Open
CloseLegend
Legend

Service
Planner/
Dispatcher

Info button with more information

<Role Name>

<Role Name>

Customer Return Management

Process Details: Processing Inbound Delivery Notifications
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Processing Inbound Delivery Notifications Customer Return Notifications

Create a
Customer
Return
Notification

X
Processing
Inbound
Deliveries

Processing
Customer
Return

Creating
Customer
Credit Memo

Processing
Receivables
and
Payments

Order-to-Cash
(Sell-from-Stock)

Processing
Inspections

Order-to-Cash
(with Specified Products)
Order-to-Cash (Third-Party Order
Processing Material)
Over-the-Counter Sales
Service and Repair

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

Scenario Description
The Processing Inbound Delivery Notifications process comprises the creation and use of
inbound delivery notifications (IDNs). An IDN represents a delivery coming from outside. An
IDN can either be an ASN (advanced shipping notification) or a printed delivery note
accompanying the physical goods. An IDN of delivery type Customer Return usually precedes
a standard customer sales process, over-the-counter sales process, or a third-party order
process. However, it is optional for the customer returns created for repair. Creating an IDN is
mandatory for customer returns, parts returns, and stock transfers and optional for the
supplier deliveries. Based on an IDN, the inbound processing can always be done. You can
process inbound deliveries with inbound delivery notifications with or without task support
from the system. Additionally, as a follow-up activity in a third-party order process, a Return to
Supplier document can be triggered. In a service process, the Repair at Own Service Center
activity triggers a customer return for goods to be serviced.

Further Information
Performed by
Warehouse Manager

In the Work Center

Inbound Logistics

Customer Return Management

Process Details: Processing Inbound Deliveries
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Processing Inbound Deliveries - Based on ASN with Task Control

Processing
Inbound
Delivery
Notifications

Create a
warehouse
request inbound

Create a
warehouse
task inbound

Click here to display process variants

Confirm a
warehouse
task inbound

Accept a
deviation inbound

Check and
finalize an
inbound
delivery

X
Processing
Customer
Return

Creating
Customer
Credit Memo

Processing
Receivables
and
Payments

Order-to-Cash
(Sell-from-Stock)
Order-to-Cash
(with Specified Products)

Processing
Inspections

Order-to-Cash (Third-Party Order

Processing Material)
Over-the-Counter Sales
Service and Repair

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

Process Description
The Processing Inbound Delivery business process enables you to process the products
received into a warehouse and post them to own stock or to an externally-owned stock (for
third-party customer returns and for returns to repair goods). You can use the following
inbound delivery types: supplier delivery, customer return (for standard sales, third-party sales
orders and repair goods), (spare) parts return, and stock transfer. For supplier deliveries, you
can use an inbound delivery notification or you can directly refer to the purchase order in the
Post Goods Receipt screen. You can process your inbound deliveries based on an inbound
delivery notification and with or without task support from the system.
Based on your logistics model settings, a quality inspection can be created automatically,
except for customer returns which were posted to externally-owned stock, for example, in a
third-party order process. The incoming goods can then be stored in a specially designated
area (for example, quality inspection stock).

Further Information
Performed by
Warehouse Operator

In the Work Center

Inbound Logistics

See also
Inbound Delivery Processing

Customer Return Management

Process Details: Processing Inbound Deliveries
Click process
chevrons for details

Processing Inbound Deliveries - Based on ASN with Task Control

Processing
Inbound
Delivery
Notifications

Create a
warehouse
request inbound

Create a
warehouse
task inbound

Confirm a
warehouse
task inbound

Accept a
deviation inbound

Check and
finalize an
inbound
delivery

Click here to hide process variants

i Processing Inbound Delivery - Based on ASN without Task Control

i Processing Inbound Delivery for Externally-Managed Location
Processing
Inspections

X
Processing
Customer
Return

Creating
Customer
Credit Memo

Processing
Receivables
and
Payments

Order-to-Cash
(Sell-from-Stock)
Order-to-Cash
(with Specified Products)
Order-to-Cash (Third-Party Order
Processing Material)
Over-the-Counter Sales
Service and Repair

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

Process Description
The Processing Inbound Delivery business process enables you to process the products
received into a warehouse and post them to own stock or to an externally-owned stock (for
third-party customer returns and for returns to repair goods). You can use the following
inbound delivery types: supplier delivery, customer return (for standard sales, third-party sales
orders and repair goods), (spare) parts return, and stock transfer. For supplier deliveries, you
can use an inbound delivery notification or you can directly refer to the purchase order in the
Post Goods Receipt screen. You can process your inbound deliveries based on an inbound
delivery notification and with or without task support from the system.
Based on your logistics model settings, a quality inspection can be created automatically,
except for customer returns which were posted to externally-owned stock, for example, in a
third-party order process. The incoming goods can then be stored in a specially designated
area (for example, quality inspection stock).

Further Information
Performed by
Warehouse Operator

In the Work Center

Inbound Logistics

See also
Inbound Delivery Processing

Customer Return Management

Process Details: Processing Inspections
Click process
chevrons for details

Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Processing
Customer
Return

Processing Inspections

Record
inspection
results

Decide
about quality

Inspect
samples

Scenario
Explorer

Processing
Receivables
and
Payments

Process Description
The Processing Inspections business process allows you to process, monitor, and analyze
inspections of products :

Scenario/Processes

Inspections at goods receipt

Receiving inspections for supplier deliveries, first articles, customer returns, and stock
transfers

Business Value

Inspections in production
In-process control and final inspections for production

Scenario Flow

Inspections in shipping
Final inspections for customer shipments

Further Information

Creating
Customer
Credit Memo

2013 SAP AG. All rights reserved.

As part of this process, you inspect the samples taken for inspection, record results, make a
decision about the quality of the inspected goods, and, if necessary, trigger corrective or
preventive actions.
Planned inspections are triggered automatically, in a suitable logistics or production model.
This is an exception for customer returns which were posted to externally-owned stock, for
example, in a third-party order process.
Unplanned inspections are triggered manually by the user.

Further Information
Performed by
Inspector
Quality Engineer
Quality Manager

In the Work Center

Quality Control

See also
Inbound Delivery Processing

Customer Return Management

Process Details: Processing Customer Return
Click process
chevrons for details

Processing Customer Return - with Credit Memo

Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Check and
ensure
consistence
of customer
return

Send return
confirmation
form to
customer

Check and
adjust the
customer
return

Release
customer
return with
credit memo

Trigger
follow-up
with sales
order
(optional)

Creating
Customer
Credit Memo

Processing
Receivables
and
Payments

Click here to display process variants

Processing
Inspections

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

Process Description
The Processing Customer Return business process enables you to handle customer
returns. Normally the process starts when ordered and shipped products are returned
unexpectedly by the customer. After the inbound delivery is completed, you recognize a new
return and initiate a confirmation form to be sent to the customer to inform him or her about
the goods receipt. At this point, you can check the content of the return, such as picked
quantity, notes, and return references.
A return process in a third-party order processing context, is indicated by the type Return to
Supplier and by assigning the supplier, supplier notification, purchase order and a current
externally-owned stock quantity. A return process in a service context, is indicated by the type
Repair at Own Service Center, and by assigning the current externally-owned stock quantity,
along with an option to request an outbound delivery.
In sales related scenarios, you can add an internal note or some information for the customer
to be printed on the credit memo and also adjust pricing relevant parameters, for example,
quantity to be invoiced, restocking fee, quality loss fee, and freight. Finally, you have to
request a credit memo or trigger compensation delivery.

Further Information
Performed by
Sales Representative

In the Work Center

Sales Orders

See also
Receipts and Returns Quick Gui
de

Customer Return Management

Process Details: Processing Customer Return
Click process
chevrons for details

Processing Customer Return - with Credit Memo

Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Check and
ensure
consistence
of customer
return

Send return
confirmation
form to
customer

Check and
adjust the
customer
return

Release
customer
return with
credit memo

Trigger
follow-up
with sales
order
(optional)

Creating
Customer
Credit Memo

Processing
Receivables
and
Payments

Click here to hide process variants

Processing
Inspections

Scenario
Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

i Processing Customer Return - without Credit Memo

Processing Customer Return - with Outbound Delivery

Process Description
The Processing Customer Return business process enables you to handle customer
returns. Normally the process starts when ordered and shipped products are returned
unexpectedly by the customer. After the inbound delivery is completed, you recognize a new
return and initiate a confirmation form to be sent to the customer to inform him or her about
the goods receipt. At this point, you can check the content of the return, such as picked
quantity, notes, and return references.
A return process in a third-party order processing context, is indicated by the type Return to
Supplier and by assigning the supplier, supplier notification, purchase order and a current
externally-owned stock quantity. A return process in a service context, is indicated by the type
Repair at Own Service Center, and by assigning the current externally-owned stock quantity,
along with an option to request an outbound delivery.
In sales related scenarios, you can add an internal note or some information for the customer
to be printed on the credit memo and also adjust pricing relevant parameters, for example,
quantity to be invoiced, restocking fee, quality loss fee, and freight. Finally, you have to
request a credit memo or trigger compensation delivery.

Further Information
Performed by
Sales Representative

In the Work Center

Sales Orders

See also
Create an Invoice or Credit Mem
o with Reference to Preceding
Documents

Customer Return Management

Process Details: Creating Customer Credit Memo
Click process
chevrons for details

Creating Customer Credit MemoX

Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Processing
Customer
Return

Transfer
invoice
requests into
a credit
memo

Release the
credit memo

Processing
Receivables
and
Payments

Processing
Inspections

Scenario
Explorer
Scenario/Processes
Business Value

Process Description
The Creating Customer Credit Memo business process enables you to create and handle
credit memos. After you perform a goods return, the system automatically creates invoice
requests that you must transfer to a credit memo sent to the customer. The credit memo is
also passed to cash flow management in order to trigger the related payment, for example by
check, bank transfer, or credit card. This transfer can be done using an invoice run, or
manually. It is possible to combine several invoice requests into one credit memo or split them
into several credit memos. You can also create a credit memo manually.

Further Information
Performed by
Accounts Receivable
Accountant

In the Work Center

Customer Invoicing

Scenario Flow
See also
Further Information

2013 SAP AG. All rights reserved.

Create an Invoice or Credit Mem

o with Reference to Preceding
Documents

Customer Return Management

Process Details: Processing Receivables and Payments with Accounts Maintenance - Standard
Click process
chevrons for details

Processing Receivables and Payments X

with Accounts Maintenance - Standard
Processing
Inbound
Delivery
Notifications

Processing
Inbound
Deliveries

Processing
Customer
Return

Creating
Customer
Credit Memo

Clear open
items and
differences

i
Order-to-Cash
(Sell-from-Stock)

Processing
Inspections

Scenario
Explorer
Scenario/Processes

Order-to-Cash
(with Specified Products)

Process Description
The Processing Receivables and Payments with Accounts Maintenance - Standard
business process enables you to monitor customer accounts on a regular basis. You can
clear any remaining open items and write off small differences manually.

Further Information
Performed by
Accounts Receivable
Accountant

In the Work Center

Business Value

Receivables
Payment Management
Cash & Liquidity Management

Scenario Flow
See also
Further Information

2013 SAP AG. All rights reserved.

Quick
Guide for Payment Allocation

Customer Return Management

Business Value

Initiate

Receive
Customer
Return
Delivery

Create
Customer
Return
Notification

Scenario
Explorer

Initiate
Inbound
Processing

Post Goods
Receipt With
or Without
Tasks

Release
Proposal for
Payment

Overview
This scenario streamlines the customer
returns management for midsized companies.

Business Value

SAP Business ByDesign supports the entire

customer returns management cycle - from
delivery notification and the physical product
return through to payment based on a credit
memo.

Scenario Flow

You can increase customer loyalty with

efficient returns processes.

Scenario/Processes

Further Information

Settle

Manage

2013 SAP AG. All rights reserved.

Manage
Payment
Based on
Credit Memo

Post to
Ledger

Key Benefits
Well-managed returns can translate into sales opportunities
Tracking allows companies to stay on top of each return by monitoring its logistics
and refunding status, and the corresponding logistics and financial documents
Better transparency, enabled by adherence to applicable business rules, allows you
to provide accurate information for customer queries
By identifying the reasons for returns, quality is improved
Using return sales rate reports that show the return rate for each month of the
current year helps you to monitor quality levels

Customer Return Management

Scenario Flow

Inbound Logistics

Processing
Inbound
Delivery
Notification

Sales Orders

Processing
Inbound
Delivery

Customer Invoicing

Processing
Customer
Return

Based on ASN w/o

task control
Based on ASN w/ task
control
Based on ASN from
Warehouse Provider

Creating a
Customer
Credit Memo

Payables
Payment Management

Processing
Receivables
and
Payments

Processing
Payments with
Accounts
Maintenance Standard
Variant

With Credit
Memo
Without Credit
Memo

Order-to-Cash
(Sell-from-Stock)

Scenario
Explorer

Order-to-Cash
(Sell-from-Stock)

Quality Planning

Order-to-Cash
(with Specified Products)

Order-to-Cash
(with Specified Products)

Order-to-Cash (Third-Party
Order Processing Material)
Over-the-Counter Sales
Service and Repair

Scenario/Processes

Order-to-Cash (Third-Party
Order Processing Material)

Processing
Inspections

Over-the-Counter Sales

Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

Legend
Dotted
line =
optional
Process
mainly
driven by
the user

Dotted
line =
optional
Process
mainly
driven by
the
system

Process
variant1
Process
variant 2

Work
Work
Center
Center

Additional
Applicatio
Work
Center
n

Process related
to Financials

Work center in which

process is performed

Related
scenarios

Business
document flow

Customer Return Management

Further Information

Scenario
Explorer
Scenario/Processes

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Business Value
Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

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