Returns and Credit Memos

Customer dissatisfaction with some percentage of provided products and services is an unhappy fact of life in organizations. When this occurs, the sales organization is required to provide solutions to clients in a variety of ways. In some cases, the customer may just try to return the product for credit. In other cases, the product may be damaged in transit, and it is not worth returning to the organization. In this case, the client may request the credit for the damaged equipment. Both scenarios are the subjects of the two following years.

When a customer requests for a return, it is treated as a type of order and handled in R/3’s sales function. While products may be returned in R/3 without a corresponding past order, in our example, we will assume that a previous order has been placed and is being returned.

A credit memo is also treated as a type of order and handled in R/3’s sales function. In this instance, the customer may have received a product that was damaged or ruined on delivery. Hence, it makes little sense to return the actual product or material, given that the customer’s version of events is accepted. We likewise assume that a previous order has been placed and credit is being sought.

Returns and credit memos are another kind of sales order documents in SAP and they are also created in the same VA01 transaction which is used to created any other kind of regular order including debit memos.

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