Returnable Packaging Step by Step

Monday, October 29, 2018

11:20 AM

Packing Instructions & Determination

Packing instruction is a master data that you defined to set up the packaging material used by materials. For example, if
your packing process have a standard such as, a box will contains 6 PCs of material XYZ. Thus, packing instructions of this
will be set up as a master in your system. So that, you don’t need to do manual packing process and reduce your time and
effort in do packing in the system. Based on automatic packing process, when delivery order created, system will
automatically search your packing instruction for materials that you delivered and then calculated and give you result of
packing materials used. Automatic pacing is made based on combination of customer, materials, and packaging material
used.

CREATE PACKING INSTRUCTION

T-code you used for create packing instructions is POP1. First you give external name for your packing instruction.

The combination of your packing instruction can be: one packaging material with one material or one packaging material
with many materials.
Furthermore, you can also maintain the dimension of this packing instruction.

Basically, the process of create packing instruction is done till this step. The next step is assign your packing instruction to
your packing instruction determination.

PACKING INSTRUCTION DETERMINATION

To be able to be used in delivery process, thus the packing instruction have to be assign to packing instruction
determination based on the rule you already defined.

T-code for create packing instruction determination is POF1.

First, determination type that contains key combination should be set up through customizing.

Here, I chooses standard, determination is based on Material and Ship-to Party.

In the entry provided, for material and customer set up here I assign the packing instruction that already made before.

If we have another option to pack this material thus thus the other packing instruction could be assign as an alternative
packing instruction.
Standard SAP provide additional 4 alternative packing instruction.

AUTOMATIC PACKING

Master packing instruction and determination that already created in previous step then will be used in automatic packing
process. If you familiar with delivery processing, when you create packing in Outbound Delivery Document (ODO) you can
do automatic packing there.

As for example in screenshot below, the material to be packed will be listed down in bottom section. To do automatic
packing, click on button

System then will searching the appropriate packing instruction that already mapping in packing instruction determination.
If suitable packing found, the material will be packed into packaging material based on the rule of quantity defined.
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From <https://monicaradytia.wordpress.com/2013/07/04/packing-instructions-determination/>

Returnable Packaging part. 1

Process of returnable packaging basically like the consignment process which consist of:

 Returnable Packaging Shipment

 Returnable Packaging Pick Up
 Returnable Packaging Issue
Returnable Packaging Shipment

>> On returnable packaging shipment, here will record the shipment of the packaging to customer.
Steps:

To ship returnable packaging using a standard sales order, for example, proceed as follows:

 Create a sales order using the order type OR.

 Enter the required data on the customer, the materials , and the delivering plant.
 Enter the returnable packaging as a main item or sub-item as required. If you use packing functionality or HU
management, this process cannot do automatically based on your HU number assignment when created delivery
order. HU as the sub item will added automatically below the items of material if you made appropriate setting in
item category assignment in delivery order.
 Enter all other relevant data and save the order.
  Create a delivery as the subsequent document for this sales order and, after picking has been completed
successfully, post goods issue.
For more clearly, look at the screenshot below:

Here I create a sales order, the order type is “OR” which is used for standard order. I filled customer, material, and
quantity that customer ordered. Since, I use packing functionality, I don’t add packaging material as a item in sales order. I
will add the item when do delivery order.

Standard Sales Order

From the sales order I have created, then I create delivery order. On delivery order document, I pack the material T-ATA01
into a packaging material PK-102 as you can see on screen below.
Delivery Order with Packaging Material
The packaging material is included as new item in delivery order with item category TAL. The determination of item
category is setting in customizing. Since I already assigned the item category group “LEIH” for packaging material in sales
view Sales: sales org. 2 in material master.

Also make sure movement type for ItCa TAL that is used in packaging material is 621 GI ret.pack.:lending.

After finished creating delivery order, then post goods issue will be done.

Movement Type of Packaging Material’s Item Cat. Used

After goods issue, the position of the stock will change. As you can see in MMBE transaction, there is 1 PC of material PK-
102 in Cust.Ret.Pkg. The quantity of the packaging material is based on the GI quantity for delivery order made before.
This process of returnable packaging shipment ended here. Based on the stock recorded then you can maintain your
packaging material that was rented by your customer.
Stock Overview of Packaging Material

Material Document After Goods Issue

Since, material PK-102 is non valuated material, therefore there is no cost appear in accounting document.

Accounting document created in Returnable Pack. Shipment Process

If you continue the process to billing, then you will see that item PK-102 is not relevant for billing therefore there is this
item not exist in billing document created.
Billing Document

Billing doc. number created

From <https://monicaradytia.wordpress.com/2013/06/27/returnable-packaging-part-1/>

Returnable Packaging Part. 2

After finished the process of returnable packaging shipment, your customer then will return back your packaging that they
borrow from you. To record the receiving process, you then need to follow up the customer request by using Returnable
Packaging Pick Up process.

Returnable Packaging Pick Up

>> This process is used when the packaging material that exist in customer’s warehouse will be returned back to our stock.
Steps:

The process will follow like this:

 Create a sales order using order type LA .

 Enter the required data on the customer, the returnable packaging, and the plant to which the materials are to be
returned in sales order.
 Enter all other relevant data and save the order.
 Create a returns delivery for the sales order when the materials reach your company. The system proposes
delivery type LR automatically. The transaction is completed by the goods issue posting which initiates a transfer
posting from the customer’s special stock to your plant stock.
When creating returnable packaging pick up, system will automatically check how many stock of pallet exist in
Cust.Ret.Pkg. You can only confirmed quantity based on your customer returnable packaging stock your customer have.
Sales Order in Returnable Packaging Pick Up
SO Returnable Packaging 60000107 is created. Item stored in sales order is packaging material that will be returned by
customer.

Display Sales Order of Returnable Packaging Pick Up

After finish created sales order, then for the return process you will create Outbound Delivery Order. Based on the setting
in customizing, delivery type that is created is Return Delivery Order. Thus you can post Goods Receipt to receive the
packaging stock to back to your own.
Return Delivery in Returnable Pack. Pick Up
After finished Post Goods Receipt, process receiving customer returnable packaging is over. This return delivery is not
relevant for billing.

Movement Type in Returnable Pack. Pick Up

Stock overview after posted GR in Ret. Pack. Pickup
Check MMBE transaction. As you can see, your Unrestricted use stock of your pallet is back to four, and stock
of Cust.Ret.Pkg become zero.

Material doc number

The GR process only create material document without accounting document followed. Movement type used for Return
Delivery Pick Up is 622.

After GR the process of Returnable Packaging Pick Up is done. No billing document creation is needed.

From <https://monicaradytia.wordpress.com/2013/06/27/returnable-packaging-part-2/>

Returnable Packaging Part. 3

Returnable packaging issue can be used for example if customer is decided to have the packaging materials. Thus you as
vendor should post goods issue of the packaging materials that borrowed by your customer. By doing good issue then the
stocks of these packaging materials are reduced in your inventory.

Returnable Packaging Issue

>> Returnable packaging issue is used when:

a. Customer is decide to have the packaging material
b. Customer destroyed the packaging material and you as owner want to charge this customer for this.
c. Customer sell the packaging material and you want to charge customer.
Steps:

 Create a sales order using order type LN.

 Enter the required data on the customer, the returnable packaging, and the plant from which the materials are to
be taken.
 Enter all other relevant data and save the order.
 Enter a delivery for the sales order and post goods issue.
 Invoice the delivery.
Scenario:

Your customer rent your pallet again and they want to have your stock as their own. Thus we will create issue document
and billing document.
Stock Overview of Packaging Material that is rent by customer
To process the issuing of your customer returnable packaging stock therefore, you will process it using sales order too.
Like returnable packaging pick up process, system will check the availability of returnable packaging stock that is exist in
customer warehouse.

Availability check in Returnable Packaging Issue

Item category used in process returnable packaging is LNN.
Schedule line of Returnable Pack. Issue

Movement type of Returnable Pack. Issue

Delivery Order of Returnable Packaging Issue
In delivery order, then you will post goods issue of this packaging material. As you can see on your customer packaging
material stock is become zero.

Display stock overview of MMBE after goods issue

Since, stock is issued to customer, therefore accounting document will created.
Accounting document created after GI
Like, standard process of sales, after goods issue process then you can created billing document to charge this packaging
material used to customer.

From <https://monicaradytia.wordpress.com/2013/06/27/returnable-packaging-part-3/>