1. Customer Return Management Scenario Overview
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Processing Inbound Delivery Notifications
Processing Inbound Deliveries
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
Processing Inspections
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Service and Repair
Scenario
Explorer
Scenario Description
Open Legend
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.
Outbound delivery in case of returns received for repair at own service center.
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.
Scenario/Processes
Business Value
Scenario Flow
Further Information +
The following business roles are involved in this scenario:
Warehouse Operator
Sales Representative
Accounts Receivable Accountant
Service Planner/
Dispatcher

2. Customer Return Management Scenario Overview
Click process chevrons for details
Processing Inbound Delivery Notifications
Processing Inbound Deliveries
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
Processing Inspections
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Service and Repair
Scenario
Explorer
Scenario Description
Legend
Open Legend
Open Legend
Open Legend
Open Legend
Open Legend
Open Legend
Close 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 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.
Process mainly driven by the user
Process mainly driven by the system
Manual process not supported by the system
Process that communicates with third-party software (mouse-over for details)
Process with relevance to Financials
Related scenario
Info button with more information
Scenario/Processes
Business Value
Scenario Flow
Further Information +
The following business roles are involved in this scenario:
Warehouse Operator
Sales Representative
Accounts Receivable Accountant
Service Planner/
Dispatcher i
<Role Name>
<Role Name>
<Role Name>

3. Customer Return Management Process Details: Processing Inbound Delivery Notifications
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Processing Inbound Delivery Notifications - Customer Return Notifications
Processing Inbound Deliveries
Processing Customer Return
Creating Customer Credit Memo
Processing Receivables and Payments
Create a Customer Return Notification i
Processing Inspections
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Service and Repair
Scenario
Explorer
Scenario Description
Further Information
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.
Performed by
Warehouse Manager
Scenario/Processes
Business Value
In the Work Center
Inbound Logistics
Scenario Flow
Further Information +

4. Customer Return Management Process Details: Processing Inbound Deliveries
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Processing Inbound Deliveries - Based on ASN with Task Control X X
Processing Inbound Delivery Notifications
Processing Customer Return
Creating Customer Credit Memo
Processing Receivables and Payments
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 i i i i i
Click here to display process variants
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Service and Repair
Processing Inspections
Scenario
Explorer
Process Description
Further Information
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).
Performed by
Warehouse Operator
Scenario/Processes
Business Value
In the Work Center
Inbound Logistics
Scenario Flow
Further Information
See also
Inbound Delivery Processing +

5. Customer Return Management Process Details: Processing Inbound Deliveries
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Processing Inbound Deliveries - Based on ASN with Task Control X X
Processing Inbound Delivery Notifications
Processing Customer Return
Creating Customer Credit Memo
Processing Receivables and Payments
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 i i i i i
Click here to hide process variants
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Service and Repair
Processing Inbound Delivery - Based on ASN without Task Control
Processing Inbound Delivery for Externally-Managed Location
Processing Inspections i i
Scenario
Explorer
Process Description
Further Information
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).
Performed by
Warehouse Operator
Scenario/Processes
Business Value
In the Work Center
Inbound Logistics
Scenario Flow
Further Information
See also
Inbound Delivery Processing +

6. Customer Return Management Process Details: Processing Inspections
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Processing Inbound Delivery Notifications
Processing Inbound Deliveries
Processing Customer Return
Creating Customer Credit Memo
Processing Receivables and Payments X
Processing Inspections
Inspect samples
Record inspection results
Decide about quality i i i
Scenario
Explorer
Process Description
Further Information
The Processing Inspections business process allows you to process, monitor, and analyze inspections of products :
Inspections at goods receipt Receiving inspections for supplier deliveries, first articles, customer returns, and stock transfers
Inspections in production In-process control and final inspections for production
Inspections in shipping Final inspections for customer shipments
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.
Performed by
Inspector
Quality Engineer
Quality Manager
Scenario/Processes
Business Value
In the Work Center
Quality Control
Scenario Flow
Further Information
See also
Inbound Delivery Processing +

7. Customer Return Management Process Details: Processing Customer Return
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Processing Customer Return - with Credit Memo X X
Processing Inbound Delivery Notifications
Processing Inbound Deliveries
Creating Customer Credit Memo
Processing Receivables and Payments
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) i i i i i
Processing Inspections
Click here to display process variants
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Sales Representative
Scenario/Processes
Business Value
In the Work Center
Sales Orders
Scenario Flow
Further Information
See also
Receipts and Returns Quick Guide +

8. Customer Return Management Process Details: Processing Customer Return
Click process chevrons for details
Processing Customer Return - with Credit Memo X X
Processing Inbound Delivery Notifications
Processing Inbound Deliveries
Creating Customer Credit Memo
Processing Receivables and Payments
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) i i i i i
Processing Inspections
Click here to hide process variants
Processing Customer Return - without Credit Memo i
Processing Customer Return - with Outbound Delivery
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Sales Representative
Scenario/Processes
Business Value
In the Work Center
Sales Orders
Scenario Flow
Further Information
See also
Create an Invoice or Credit Memo with Reference to Preceding Documents +

9. Customer Return Management Process Details: Creating Customer Credit Memo
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Creating Customer Credit Memo X X X
Processing Inbound Delivery Notifications
Processing Inbound Deliveries
Processing Customer Return
Processing Receivables and Payments
Transfer invoice requests into a credit memo
Release the credit memo i i
Processing Inspections
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Accounts Receivable Accountant
Scenario/Processes
Business Value
In the Work Center
Customer Invoicing
Scenario Flow
Further Information
See also
Create an Invoice or Credit Memo with Reference to Preceding Documents +

10. Customer Return Management Process Details: Processing Receivables and Payments with Accounts Maintenance - Standard
Click process chevrons for details X
Processing Receivables and Payments
with Accounts Maintenance - Standard X X
Processing Inbound Delivery Notifications
Processing Inbound Deliveries
Processing Customer Return
Creating Customer Credit Memo
Clear open items and differences i
Processing Inspections
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Accounts Receivable Accountant
Scenario/Processes
Business Value
In the Work Center
Receivables
Payment Management
Cash & Liquidity Management
Scenario Flow
Further Information
See also
Quick Guide for Payment Allocation +

11. Customer Return Management Business Value
Initiate
Manage
Settle
Receive Customer Return Delivery
Create Customer Return Notification
Initiate Inbound Processing
Post Goods Receipt With or Without Tasks
Release Proposal for Payment
Manage Payment Based on Credit Memo
Post to Ledger
Scenario
Explorer
Overview
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
Key Benefits
This scenario streamlines the customer returns management for midsized companies.
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.
You can increase customer loyalty with efficient returns processes.
Scenario/Processes
Business Value
Scenario Flow
Further Information +

12. Customer Return Management Scenario Flow
Payables
Payment Management
Inbound Logistics
Sales Orders
Customer Invoicing
Processing Inbound Delivery Notification
Processing Inbound
Delivery
Processing Customer Return
Creating a Customer Credit Memo
Processing Receivables and Payments
Based on ASN w/o task control
Based on ASN w/ task control
Based on ASN from Warehouse Provider
With Credit Memo
Without Credit Memo
Processing Payments with Accounts Maintenance - Standard Variant
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Service and Repair
Quality Planning
Order-to-Cash
(Sell-from-Stock)
(with Specified Products)
Order-to-Cash (Third-Party Order Processing – Material)
Over-the-Counter Sales
Scenario
Explorer
Processing Inspections
Scenario/Processes
Business Value
Scenario Flow
Legend
Dotted line = optional
Dotted line = optional
Further Information
Process variant1
Process variant 2
Process related to Financials
Work center in which process is performed : +
Process mainly driven by the user
Process mainly driven by the system
Work
Center
Additional Application
Related scenarios
Business
document flow

13. Customer Return Management Further Information
Scenario
Explorer
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