Return to Vendor

1. Return to Vendor SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • The scenario deals with the business process of returning goods back to the vendor. Target group are buyers, warehouse employees and accounting clerks. • Benefits • Goods can be returned with a return reason captured in the document • All information for follow-on FI functions like invoice reduction, rejection, cancellation, etc. is provided • Key Process Steps • Creating return purchase order • Delivery due list for purchase orders • Picking confirmation • Goods issue • Manual review of pending credits

3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Purchaser • Production Planner • Warehouse Clerk • Accounts Payable Accountant

4. Detailed Process Description • Return to Vendor • The return to vendor process begins with a requirement to return an item to a vendor. The initial activity is to request a Returns Material Authorization (RMA) from the vendor. This is a manual step and the RMA number is entered into a text field in the return purchase order. The buyer then creates a return purchase order in the system. The return purchase order is similar to a standard purchase order except the return flag which sets up the return delivery to enable shipment of the item(s) back to the vendor. • The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the item(s) are picked and shipped back along with a delivery note. When the shipping department creates the delivery the item(s) are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor.

5. Process Flow Diagram Return to Vendor Event Need to Return Purchased Item Purchaser Manual Review of Pending Credits Return PO Confirmation Create Return PO ProductionPlanner Review Requirements Warehouse Clerk Delivery Due List for POs - Return Delivery Post Goods Issue Inventory GR/IR Accounts PayableAccountant GR/IR PPV Vendor Credit Memo PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision