0

Returns and Repairs

Contents:
 Overview
 Order entry and returns delivery
 Technical check and repairs processing
 Outbound delivery and billing

 SAP AG 1999

(C) SAP AG LO110 7-1

0.2
Returns and Repairs: Unit Objectives

At the conclusion of this unit, you will be able to:

 Name the options and process flow for returns

and repairs processing
 Create and process a customer repairs order

 SAP AG 1999

(C) SAP AG LO110 7-2

0.3
Course Overview Diagram

CS - Overview
Returns
and Repairs

Technical Objects Service Contracts

Planned
Helpdesk
Customer Service

Field Service
Evaluations
Planning

 SAP AG 1999

(C) SAP AG LO110 7-3

0.4
Returns and Repairs: Business Scenario

 A customer returns a defective device and

requests that it be repaired.
 The item is repaired and returned to the customer.
 The repairs are charged to the customer.
 Variations of this scenario are possible, for
example, the delivery of loan equipment and
exchange parts.

 SAP AG 1999

(C) SAP AG LO110 7-4

0.5
Overview: Topic Objectives

At the conclusion of this topic, you will be able to:

 Describe the options and process flow for returns

and repairs processing

 SAP AG 1999

(C) SAP AG LO110 7-5

0.6
Process of Repair

Customer reports Service notification

faulty device

Customer repairs
order

Defective
items arrive Goods receipt

Technical check

Scrap
Service order Credit memo
Exchange part

Confirmation Outbound delivery

of repair Billing

 SAP AG 1999

 In repairs processing, you document the customer request to repair a defect serviceable item by
creating a service notification.
 The system creates a customer repairs order from the notification. You can also create the
customer repairs order directly.
 Once the serviceable item has been delivered, the goods receipt is posted to a customer special stock
for the repair order.
 The serviceable item undergoes a technical check as soon as the goods receipt has been posted.
During this process, the technician decides which operations are necessary in order to fulfill the
requirements of the customer. The results of the technical check are confirmed in the repair order.
 If the technical check indicates that the item is not worth repairing, the material can be scrapped, and
a credit memo and/or exchange parts can be delivered to the customer.
 If the item is worth repairing, the system generates a service order describing the technical
execution of the repairs.
 Once the repair has been completed, you can return the item to the customer. The cost of the repair
or a previously agreed fixed price is then billed to the customer.

(C) SAP AG LO110 7-6

0.7
Phases of Repairs Processing

The phase is started by:

Create customer Enter results of Technically
repairs order technical check complete service
order

Repair Repair start Repair

acceptance completion
confirmation

Possible operations:
• Returns • Repairs • Outbound delivery
• Dispatch of loan equipment • Exchange part • Exchange part
• Outbound delivery • Pickup of loan equipment
• Scrap • Invoice
• Credit memo • Credit memo
 SAP AG 1999

 The overall process is divided into three phases. You can define the operations to be automatically
proposed by the system for each phase, or those which can be entered by the user, in the repair
procedure. The system determines the repair procedure using the item category of the repair request
item.
 Repair acceptance begins when you create the customer repairs order. Possible operations include
the returns delivery and dispatch of loan equipment (outbound delivery).
 The repairs start when you post the goods receipt for the returns delivery. Possible operations include
repairs with automatic generation of a service order, delivery of exchange parts or unrepaired
serviceable items to the customer, scrapping of items or creation of a credit memo.
 Repair completion confirmation begins when you technically complete the relevant service order.
Possible operations include the delivery of repaired serviceable items, delivery of exchange parts,
collection of loan equipment, creation of an invoice or credit memo.
 The repair request item keeps the “Business decision to be made" status until the necessary operation
has been created at a particular stage in repairs processing.
 The repair request item is given the “Business decision made“ status as soon as the necessary
operation has been created at a particular stage in repairs processing.

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0.8
Structure of Customer Repairs Order

Service
Repairs order
notification

10 Repair request

Technical check and

business decision Returns

Dispatch of
loan equipment

Exchange part

Service Repairs
order
- Services
Delivery
- Materials

Billing items

 SAP AG 1999

 An item is created in the customer repairs order for each serviceable item category or material
number (repair request item). The system typically generates a returns item as a sub-item from this.
 The system performs a technical check and makes a business decision upon receipt of the goods.
Depending on the results of the check, it then generates one or more sub-items that represent the
extended business process: repair, delivery of an exchange part, scrapping, or creation of a credit
memo.
 The system automatically generates a service order from the sub-item for the repair that is used for
the planning, execution, and confirmation of the repair work.
 When you technically complete the order, the system generates an outbound delivery item in the
customer repairs order. This is used as the basis for the delivery with which the repaired serviceable
item is returned to the customer.
 If you perform resource-related billing, billing-relevant sub-items are created in the customer repairs
order which the system copies to the billing items during billing.

(C) SAP AG LO110 7-8

0.9
Supported Scenarios

With / without
 Service notification
 Service product / service material
 Description of service
 Pricing
 Serial numbers
 Stock tracking for single units
 Loan equipment processing
 Shipment and pickup of loan equipment
 Inspection lot
 Further process flow depending on usage
decision

 SAP AG 1999

 You can combine different functions during repairs processing to define a concrete process suitable
for your company.
 You can create a customer repairs orders directly from a service notification. The system uses the
notification number as the RMA (Return Material Authorization) number and copies it as an external
purchase order number to the customer repairs order.
 A service product is used to describe the work to be performed and used for pricing purposes when
a fixed price is being calculated.
 You can use serial numbers to identify the serviceable items uniquely in repairs processing.
Depending on the settings in the material master of the serviceable item, it is possible that goods
movements for the customer repairs order can only take place if you specify the serial number(s).
 Loan equipment processing where the loan equipment is shipped and picked up can be triggered
from repairs processing. This is necessary if the customer requires a replacement device while their
own equipment is being repaired.
 You can use inspection lots in Quality Management (QM) in the technical check. The system
automatically generates an inspection lot for the technical check for a returns goods receipt if you
have made the corresponding settings in the material master of the serviceable item. The subsequent
repairs process flow depends on the usage decision you have entered for this inspection lot.

(C) SAP AG LO110 7-9

0.10
Serviceable Item and Service Product

Customer repairs order

Serviceable item
Material entered Notebook 486
Quantity 1 PC
Material
Notebook 486 substitution
Material determination
Material Description
X Repairs Flat-rate repairs
Transfer of
service Service Upgrade
product

Serviceable item Service product

Notebook 486 Repairs

= Category of = Description of service

serviceable item
to be processed
 SAP AG 1999

 When you create a customer repairs order, the terms serviceable item and service product both play
an important role. Depending on the settings for the sales document type, you either enter only the
material number of the serviceable item in the item (sales document type RA) or two material
numbers per item: the serviceable item and service product (sales document type RAS).
 The serviceable item is the category of the device(s) to be repaired (for example, notebook 486).
 The service product represents the service material that describes the service for the customer.
Examples of service products could be "Repair PC for fixed price" or "Upgrade".
 You can use the service product to determine a fixed price for the work. Alternatively, you can
determine a task list using the service product, from which the system copies the operations and
components of the automatically generated service order. If you are not working with a service
product, you can determine a task list using the serviceable item.
 The system uses the corresponding condition records in material determination to link the service
products with the relevant serviceable items.
 If you also use the functions for lending serviceable items, you can use material determination to
determine possible material numbers for the items that can be sent as loan equipment.

(C) SAP AG LO110 7-10

0.11
Order Entry and Returns Delivery: Topic Objectives

At the conclusion of this topic, you will be able to:

 Create a customer repairs order

 Create a returns delivery

 SAP AG 1999

(C) SAP AG LO110 7-11

0.12
Repair Acceptance

Repairs order

10 Repair request

Repair acceptance
Notebook 486 Returns Loan
2 pieces Notebook 
1 piece PC 486 

Returns
Returns
delivery

Dispatch of Delivery
loan equipment of loan
equipment

 SAP AG 1999

 The customer gives instructions to perform the work during repair acceptance. A customer repairs
order is created.
 The system creates a repair request item for each serviceable item together with the necessary sub-
items.
 The settings in the repair procedure mean that a returns item is created automatically. This is used
as the basis for creating a returns delivery. This is used as the follow-on document for the customer
repairs order.
 You can add additional items, such as a loan equipment item manually. The loan equipment item is
used as the basis for the delivery of loan equipment.
 The system posts the goods receipt for the returns delivery to the customer special stock, so that
return stocks can be tracked. The serviceable items remain the property of the customer.

(C) SAP AG LO110 7-12

0.13
Technical Check and Repairs Processing:
Topic Objectives

At the conclusion of this topic, you will be able to:

 List possible follow-up actions after the technical

check
 Generate a service order from the customer
repairs order
 Process, confirm, and technically complete the
service order

 SAP AG 1999

(C) SAP AG LO110 7-13

0.14
Repair Start

Repairs order

10 Repair request

Repair start
Notebook 486 Repair Scrap Exch. Cred.
1 piece Notebook 
1 piece Notebook 
1 piece Laptop 
Service
order

Repair

Scrap

Delivery of
Exchange part
exchange part

 SAP AG 1999

 Once the defective item has been accepted for repairs, the actual start of the repair process can begin
with the technical check and the resulting business decision.
 Technical check:
The items are checked to see if they can be repaired or if they have to be scrapped, and whether an
exchange part needs to be delivered.
 The system generates a repairs item for the serviceable items to be repaired, which automatically
generates a service order. This service order documents the actual repair of the serviceable item.
 If you are working with inspection lots, an item is generated as soon as you have entered a usage
decision for the inspection lot.
 You must manually post goods movements relating to the scrapping of material from the sales order
stock.
 When you send exchange parts, the system generates a delivery on the basis of the sub-items
created for this purpose.

(C) SAP AG LO110 7-14

0.15
Customer Repairs Order and Service Order

Repairs order
Service
10 Repair request order

Repairs

Service
20 Repair request order

Repairs

30 Repair request Service

order

Repairs

 SAP AG 1999

 You can generate a service order for each repair sub-item in the customer repairs order.
 The following information is available in the service order header:
 Material number of the serviceable item
 Quantity of serviceable items to be repaired
 Material number of the service product, if required
 Number of the customer repairs order and item
 If serial numbers are used, these appear in the object list of the service order.
 The operations and components for the service order may be taken from a general task list that is
assigned to the service product or serviceable item.
 The item in the customer repairs order is the settlement receiver for the service order.

(C) SAP AG LO110 7-15

0.16
Outbound Delivery and Billing: Topic Objectives

At the conclusion of this topic, you will be able to:

 List the options for outbound delivery and billing

 Deliver the repaired items to the customer
 Generate an invoice
 Describe the value flow for repairs processing

 SAP AG 1999

(C) SAP AG LO110 7-16

0.17
Completion Confirmation

Repair order

10 Repair request

Confirmation
Notebook 486 Delivery Loan from
1 piece Notebook 
1 piece PC 486 

Outbound
Delivery
delivery

Pickup of Returns
loan equipment delivery

 SAP AG 1999

 The technical completion of the service order triggers an automatic generation of items in the
customer repair order.
 If the serviceable material was posted to the locked sales order stock on goods receipt, it must be
reposted to the unrestricted-use sales order stock before technical completion of the service order.
 The system creates a delivery-relevant sub-item for the outbound delivery of the serviceable item to
the customer. If the customer has received loan equipment, the system also generates a sub-item for
the returns delivery of this equipment.

(C) SAP AG LO110 7-17

0.18
Billing in Repair Order

By effort

Create billing Repairs order Create billing

request document
10 Repair request

 Generation of Billing
billing-relevant items in Billing item 1
customer repairs order document
Billing item 2

With fixed price

Create billing
Repair order document
Billing
10 Repair request document
Billing document according
to conditions of repair
request item
 SAP AG 1999

 In repairs processing, you can either bill the customer for a fixed amount or according to effort. This
billing form is defined in the repair request item. The billing form is proposed by the item category
and can be changed individually.
 In resource-related billing, you can create billing-relevant sub-items for the repair request item
using the function "Create billing request". This is controlled by the dynamic item processor profile
(DIP profile) you have entered in the repair request item. The system copies the sub-items when you
create a billing document.
 When you bill a fixed amount, the system performs pricing using the service product or the
serviceable item, depending on the sales document type. You can create a billing document directly
with reference to the customer repairs order. The system generates a billing item for each repair
request item.

(C) SAP AG LO110 7-18

0.19
Value Flow

Billing Revenues Repairs order

document
Posting of billing 10 Repair request
document

Settlement of
service order Costs

Confirmation documents Service

order
Costs

Posting completion
confirmations

 SAPAG1999

 When you confirm a service order, cost information initially collected on the service order becomes
available.
 Since the order type of the service order is not classed as revenue-bearing, revenues are posted to the
item in the customer repairs order during billing.
 The service order is assigned to the account for the item in the customer repairs order, in other
words, this item is the settlement receiver entered in the settlement rule for the service order. When
you settle a service order, its costs are transferred to the item for the customer repairs order.
 You can display the result of the activity as the difference between costs and revenues in the cost
overview for the item in the customer repairs order.
 The item in the customer repairs order also has a settlement rule. When you settle the customer
repairs order, the result is transferred to the settlement receiver. For example, the settlement receiver
can be a profitability segment from profitability analysis (CO-PA).

(C) SAP AG LO110 7-19

0.20
Returns and Repairs: Unit Summary

 The customer repairs order represents the main

document in returns and repairs processing.
 The follow-on documents required for the
process are generated from the customer repairs
order.
 These include return deliveries, service orders,
outbound deliveries, and billing documents.

 SAP AG 1999

(C) SAP AG LO110 7-20

0.21Exercises: Returns and Repairs

Unit: Returns and Repairs

Topic: Order Entry and Returns Delivery

At the conclusion of this exercise, you will be able to:

 Create a customer repairs order
 Create a returns delivery

The customer orders the repair of faulty equipment in the service center
and sends the equipment in for repair.

1.1 Creating a customer repairs order

1-1-1 Your customer has 2 PCs that cannot be repaired by telephone consultation.
Therefore they must be sent to the customer service center for repair.
Create a customer repairs order with order type RA.
Sales organization: 1000
Distribution channel: 14
Division: 00
1-1-2 Enter your customer T-CSD## as the sold-to party. The customer's
purchase order number is RA-##.
He wants two pieces of equipment with material number T-FSN## to be
repaired.
1-1-3 Go to the repairs screen of the repair request item. Which operation has
been generated as the sub-item?

1-1-4 What is the billing type for this repair request item?

1-1-5 Return to the item overview screen and save the customer repairs order.
1-1-6 Customer repairs order number:

1-2 Creating a returns delivery

The defect equipment arrives at your company. Create a returns delivery. Use
delivery type LR and shipping point 1200.

(C) SAP AG LO110 7-21

 1-2-2 The customer sends in the serial numbers 20 and 21. No master data exists
for these serial numbers. Assign these serial numbers to the delivery item.

1-2-3 Choose the menu path – Edit  Post Goods Issue to represent the goods
entry.

1-3 Displaying a serial number master record

1-3-1 To check whether the goods receipt was correctly updated, display the
serial number master record for material T-FSN##, serial number 20.
1-3-2 What appears in the Stock information?

(C) SAP AG LO110 7-22

 Unit: Returns and Repairs
Topic: Technical Check and Repairs Processing

At the conclusion of this exercise, you will be able to:

 Create a service order from a customer repair order
 Process, confirm, and technically complete the service order

The result of the technical check is that one piece of equipment is

repairable while the other has to be scrapped. The repair activities are
initiated. There is no warranty for the item that is to be scrapped, which
means that no credit memo is created.

2-1 Entering the result of the technical check

2-1-1 Change your customer repairs order. Call up the repairs detail screen.
2-1-2 How can you determine that the returns delivery has been posted?

2-1-3 Change the quantity to be repaired to 1. Choose Serial and assign serial
number 20 by selecting it and moving it to the left.
2-1-4 Insert a new line with quantity 1 and set the flag Scrap. Choose Serial and
assign serial number 21 by selecting it and moving it to the right.

2-1-5 Return to the overview screen. Copy the automatically generated item
proposal.

2-1-6 Save the customer repairs order.

2-1-7 A service order was created automatically.

Where can this service order be displayed?

What is the service order number?

2-2 Scrapping a faulty item

(C) SAP AG LO110 7-23

 2-2-1 To scrap the item that cannot be repaired, enter a manual goods movement.
2-2-2 Choose movement type 551 with special stock indicator E (withdrawal for
scrapping from unrestricted-use sales order stock).
Plant: 1200
Storage location: 0001
2-2-3 Enter your sales order number and item number 10000.
Enter material number T-FSN##, quantity 1 and serial number 21.
Post the goods issue.

2-3 Confirming and technically completing a service order

2-3-1 The repair work has been performed.
Enter the work time for the service order operation in the function Overall
Completion Confirmation.
Create a goods issue for a motherboard, material number R-1111 for plant
1200, storage location 0001.
As the activities have been completed, choose Tech. completion and save
the confirmation.

(C) SAP AG LO110 7-24

 Unit: Returns and Repairs
Topic: Delivery and Billing

At the conclusion of this exercise, you will be able to:

 Deliver the repaired items to the customer
 Create a billing document
 Display the result of the repair activities

The repaired item is sent back to the customer, and the consumed
resources are billed.

3-1 Creating a delivery

3.1.1 Create a delivery to return the repaired equipment to the customer.
Change the customer repair order.
3-1-2 Display the operation that was created by the technical completion of the
service order. Which operation has been created?

3-1-3 Deliver the repaired item to the customer. Create a delivery directly from
the customer repair order.
3-1-4 Create a transfer order for the delivery using the subsequent functions.
3-1-5 Delivery number:

Warehouse number: 012

Copy pick quantity: 2

Post the transfer order so that the goods issue is posted.

(C) SAP AG LO110 7-25

 3-2 Creating billing items and billing documents
3-2-1 Choose the function Create billing request - Individual processing to create
items in the customer repairs order that are relevant for billing.
3-2-2 Enter the number of your customer repairs as the sales document.
3-2-3 Choose Save billing request.
3-2-4 In the service repair order, choose the menu path: Edit  Display Criteria
 All Items to display the generated items that are relevant for billing.

3-2-5 Bill the customer repairs order directly.

3-2-6 Billing document number:

3-3 Settling a service order

3-3-1 Settle the service order.
Controlling area: 1000

3-4 Displaying the repair result

3-4-1 Display the cost report for the customer repairs order item. What is the
result of the repair service?

(C) SAP AG LO110 7-26

0.22Solutions: Returns and Repairs

Unit: Returns and Repairs

Topic: Order Entry and Returns Delivery

1.1 Creating a customer repairs order

1-1-1
Logistics  Customer Service  Service Processing  Order  Customer
Repair  Create

Field name or data type Values

Order type RA
Sales organization 1000
Distribution channel 14
Division 00

Enter

1-1-2
Field name or data type Values
Sold-to party T-CSD##
Purchase order number RA-##
Material T-FSN##
Order quantity 2

1-1-3
Repairs
The operation "Returns" was created.

1-1-4
Billing type: 02 (Costs)

1-1-5
Back

(C) SAP AG LO110 7-27

 Save

1-1-6
Customer repairs order number: See system message

1-2 Creating a returns delivery

1-2-1
Logistics  Customer Service  Service Processing  Order  Customer
Repair  Returns Delivery

Field name or data type Values

Repair request Your order number
Delivery type LR
Shipping point 1200

Enter

1-2-2
Select the item and choose the menu path:
Item  Serial Numbers

Field name or data type Values

Serial number 20
21

Enter

Edit  Post Goods Issue

1-3 Displaying a serial number master record

1-3-1
(C) SAP AG LO110 7-28
 Logistics  Customer Service  Technical Objects  Serial Numbers 
Display

Field name or data type Values

Material T-FSN##
Serial number 20

Enter
1-3-2 The serial number is in the sales order stock for the customer repairs order.

(C) SAP AG LO110 7-29

 Unit: Returns and Repairs
Topic: Technical Check and Repairs Processing

2-1 Entering the result of the technical check

2-1-1
Logistics  Customer Service  Service Processing  Order  Customer
Repair  Change

Field name or data type Values

Order Your order number

Enter
Repairs

2-1-2
The quantity 2 is displayed under "Received".

2-1-3
Field name or data type Values
Quantity (Flag "Repair") 1

Serial
Mark serial number 21 and choose Left column and Copy.

2-1-4
Insert line
Field name or data type Values
Quantity 1
Scrap Mark the flag
Enter
Mark serial number 21 and choose Right column and Copy.

2-1-5

(C) SAP AG LO110 7-30

 Back
Copy proposal: Yes

2-1-6
Save

2-1-7
Document flow
Service documents
Position the cursor on the service order and choose Display document.

2-2 Scrapping a faulty item

2-2-1
Logistics  Customer Service  Service Processing  Confirmation  Goods
Movement  Goods Movement
2-2-2
Field name or data type Values
Movement type 551
Special stock E
Plant 1200
Storage location 0001

Enter

2-2-3
Field name or data type Values
Sales order Your order number
Item 10000
Material T-FSN##
Quantity 1

Enter

(C) SAP AG LO110 7-31

 Field name or data type Values
Serial number 21

Enter
Post

2-3 Confirming and technically completing a service order

2-3-1
Logistics  Customer Service  Service Processing  Confirmation  Entry
 Overall Completion Confirmation

Field name or data type Values

Order Your service order number

Enter

Field name or data type Values

Actual work Enter values
Material R-1111
Quantity I
Plant 1200
Storage location 0001

Tech. completion
Save

(C) SAP AG LO110 7-32

 Unit: Returns and Repairs
Topic: Outbound Delivery and Billing

3-1 Creating a delivery

3-1-1
Logistics  Customer Service  Service Processing  Order  Customer
Repair  Change

Field name or data type Values

Order Your order number

Enter

3-1-2
Repairs
An action for outbound delivery has been created.

Back

3-1-3
Sales Document  Deliver

3-1-4
In the delivery overview choose:
Subsequent Functions  Create Transfer Order
Save Yes

(C) SAP AG LO110 7-33

 3-1-5
The delivery number is displayed.
Field name or data type Values
Warehouse number 012
Adopt pick. quantity 2

Enter
Post

3-2 Creating billing items and billing documents

3-2-1
Logistics  Customer Service  Service Processing  Completion  Create
Billing Request  Individual Processing

3-2-2
Field name or data type Values
Sales document Your order number

3-2-3
Save billing request
The customer repair order is changed.

3-2-4
Edit  Display Criteria  All Items

3-2-5
Sales Document  Billing
Save

3-2-6
Billing document number: See system message

3-3 Settling a service order

3-3-1
(C) SAP AG LO110 7-34
 Logistics  Customer Service  Service Processing  Completion  Order
Settlement  Single

Field name or data type Values

Controlling area 1000
Order Your service order number
Settlement period Actual month
Test run Delete flag

Execute

3-4 Displaying the repair result

3-4-1
Logistics  Customer Service  Service Processing  Order  Customer
Repair  Display

Field name or data type Values

Order Your order number

Enter
Environment  Cost Report

The result is in line Debits, column Actual.

(C) SAP AG LO110 7-35