RMA Process

Lori Jaeger February, 2008

Motivation for Composite Applications

Business processes have to be flexible … but IT systems have to be stable

Composites …
reuse and combine existing application parts to initiate new business practices can be quickly adapted to changing business needs enable ad-hoc collaboration between business partners integrate functional areas from various sources across systems and enterprises
© SAP 2007 / Page 2

Composites …
sit on top of existing enterprise applications are non-invasive to the core IT system are loosely coupled with the core IT system have their own lifecycle

Building Blocks of a Composite Application

Portal Access Layer

Composite Applications orchestrate enterprise services and combine them into user-centric processes, supported by their own business logic

Composite Application

Process Logic Layer

UI Layer

Name Title Check

Discover Enterprise Services

Business Logic Layer Backend Connectivity Layer
Web Service call

Service Consumption Service Provisioning
Create Enterprise Services

Backend

Service Enablement Layer Backend Business Logic

© SAP 2007 / Page 3

RMA Updated Process

Customer

CSR

CSR

Customer

Receiving

Inspector

Inspector

RMA Request

RMA Rejected Or Created Waiting Approval

RMA Approval

Receives RMA and returns parts

Receives parts and changes RMA status

Change status to In Inspection

Inspect parts and change status to Inspected

CSR

CSR

CSR

Automatic System Activity

CSR

RMA Processing

Select Disposition

RMA activation

Backend Objects are created And follow on activities, GR, Credit processing, etc. Are handled in the backend object

RMA closed

© SAP 2007 / Page 4

Offline Process
RMA Request

System Step by Role
Customer

Automatic System Processing

Manual Activity By Role

Customer fills out and submits RMA request form

RMA Request

RMA request form is sent to CSR when submit button is pressed

None

© SAP 2007 / Page 5

Offline Process
RMA Reject

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

RMA Rejected

OFFLINE: CSR opens acceptance form from UWL and rejects the customer’s request for an RMA

E-mail is sent to the customer explaining that their request for an RMA has been rejected

None

© SAP 2007 / Page 6

Offline and Online Process
RMA Create

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

RMA Created Waiting Approval

OFFLINE: CSR opens acceptance form from UWL, enters information as necessary, and clicks "create“ ONLINE: CSR creates new RMA via RMA Create screen with information received from the customer over the phone and saves RMA

RMA is created with status "waiting approval“ The CSR can also click “create and approve” to perform both tasks in one step

If more approval is needed by higher management, it is done outside this application and the RMA is approved only after all internal approvals have been received

© SAP 2007 / Page 7

RMA Approval

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

RMA Approval

CSR accesses the RMA via the search screen CSR enters notes for receiving as to where materials should be sent once received CSR clicks approve button

RMA item status is changed to approved for all items and notification is sent to the customer with the response form
(notice sent to customer
only if status is changed FROM waiting approval TO approved)

None

© SAP 2007 / Page 8

Customer Returns Merchandise

System Step by Role
Customer

Automatic System Processing

Manual Activity By Role

None

None

Receives RMA and returns parts

Customer receives e-mail notification with RMA number and response form Customer prints response form, attaches it to packages, and ships parts

© SAP 2007 / Page 9

Merchandise Received with Discrepancies

System Step by Role
Receiving

Automatic System Processing

Manual Activity By Role

Receives parts and changes RMA status

Receiving employee accesses RMA details by entering RMA number in his access screen If parts in the box do not match the RMA Details, he receives the parts in with status "receiving errors“

CSR is notified that that the status has changed

Receiving employee compares the parts in the box to the details on the screen

© SAP 2007 / Page 10

Merchandise Receiving Employee Error

System Step by Role
Receiving

Automatic System Processing

Manual Activity By Role

Receives parts and changes RMA status

If the receiving employee realizes he has received in the wrong item(s), he again enters the RMA number in his access screen and looks at the RMA details. He then changes the status back to "approved"

CSR is notified that status has been changed Customer notifications with response form are not resent when changing the item "back" to approved

© SAP 2007 / Page 11

Receiving Discrepancies Resolved

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

RMA Created Waiting Approval

CSR accesses the RMA via the search screen and makes any necessary changes required to resolve receiving discrepancies (ie. change quantities, enter notes, add materials, etc.)

None

CSR goes to receiving to solve discrepancies. Manually notify the receiving employee that things are now O.K.

© SAP 2007 / Page 12

Merchandise Received

System Step by Role
Receiving

Automatic System Processing

Manual Activity By Role

Receives parts and changes RMA status

Receiving employee accesses the RMA details by entering RMA number in his access screen (he also enters the received date if he hasn’t previously received the RMA with errors) If all is O.K. now, he changes status on RMA items to "Received O.K."

CSR is notified that status has been changed

Receiving employee compares the parts in the box to the details on the screen Physically move the parts to the location provided in the notes

© SAP 2007 / Page 13

Parts Received in Inspection

System Step by Role
Inspector

Automatic System Processing

Manual Activity By Role

Change status to In Inspection

Inspector accesses the RMA by entering the RMA number from the package into his RMA access screen. He then changes status to "in inspection" when he receives parts

None

None

© SAP 2007 / Page 14

Parts Inspected

System Step by Role
Inspector

Automatic System Processing

Manual Activity By Role

Inspect parts and change status to Inspected

Inspector accesses the RMA by entering the RMA number into his RMA access screen. He enters the problem description as text for each item, and changes the status to inspected and saves RMA

CSR is notified that the status has been changed

Inspector physically inspects the parts

© SAP 2007 / Page 15

RMA Processing

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

RMA Processing

CSR accesses the RMA via the search screen and updates RMA as needed, adding items, canceling items, changing quantities, etc. CSR accesses R/3 transactions, history information, etc.

None

None

© SAP 2007 / Page 16

Disposition and Activation

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

Select Disposition

CSR accesses the RMA via the search screen, selects a disposition for each RMA item, changes the item status to activated, and saves the RMA

Objects are created in R/3 upon activation, which object depends on the disposition

CSR may have various conversations with the customer about disposition of parts

© SAP 2007 / Page 17

Backend Object Kick-Off
• Dispositions can be entered during any of the status‘ • Dispositions cannot be changed once they have been selected and saved • If disposition is selected in error and wrong order type is created, CSR would cancel that line item in RMA, delete order in R/3 and add a new line item in RMA with correct data

Automatic System Activity

Backend Objects are created And follow on activities, GR, Credit processing, etc. Are handled in the backend object

Disposition Scrap Return to customer as is Return to stock Warranty repair Chargeable repair Warranty Replace Chargeable Replace Send to Vendor for Repair Send to Vendor for Credit
© SAP 2007 / Page 18

Transaction n/a VA01 VA01 VA01 VA01 VA01 VA01 n/a n/a

Order type n/a RA RE RA RA RA RA n/a n/a

Additional Backend Objects

Automatic System Activity

Notifications for tracking purposes can be created via Notification Create Button

• Notifications can be created for tracking and reporting purposes – to track reasons for quality problems in manufacturing and vendor issues • No order is needed for vendor repair or vendor credit on previous screen, but this notification could track the return to the vendor in this case

Notification Customer complaint (QM) Vendor notification

Trans QM01 QM01

Notif Type Q1 F2

Use of Notification To track quality issues of manufacturing To track quality issues of vendors

© SAP 2007 / Page 19

RMA Completion

System Step by Role
CSR

Automatic System Processing

Manual Activity By Role

RMA closed

CSR accesses the RMA via the search screen and changes the status of RMA items to closed

None

None

© SAP 2007 / Page 20

RMA Demo

© SAP 2007 / Page 21

Why Start Now with RMA ?

SAP starts a ramp-up for the RMA composite on Feb 27th, 2008 Get first hand experience with a standardized composite application developed by SAP See how the RMA composite leverages the enterprise services of your ERP 6.0 backend system, but you can also use your existing R/3 backend Learn the enterprise SOA concept that stands behind RMA Understand the new SAP NetWeaver Composition Environment 7.1, on which RMA is running Explore the development tools for composite application to create your own custom-specific composite solutions

© SAP 2007 / Page 22

Industry Composite Applications
(Extract of our Development Portfolio)

Project Logbook Project Issue and Change Management Maintenance Order Processing Inventory Level Replenishment Capturing of Physical Goods Movements Sales Order Change Management Returns Merchandize Authorization Processing Field Service Experience Management Strategic Investment Buy Simulation for Retail eTax for Public Services Backorder Processing First Report of Injury for Insurance Efficient Repair Process (New) Logistic Assessment (New)

Easy Capturing, Signature and Storage of project logbooks Efficient change management for engineering projects Form based defect capturing and maintenance execution Simplified sales order entry based on target inventory levels Automated posting of document flows for goods movements Review and approve requested sales order changes Improve the returns process based on RMA numbers Feed back product issues identified by field service to product development Allows buyer to react on discounts offered by a supplier or on price changes to expect e-Portal for Tax payer registration and attribute maintenance, tax data overview and tax return efiling Supply resources in expediting management with tailored work environment to resolve backorder situations Enables an insured / claimant to inform an insurance carrier of a loss event Service-based repair process from repair case entry till repair case close Enables the assessment of a logistic situation by consolidating and including assessement cases from subordinate report levels

© SAP 2007 / Page 23

Learn More About iCOD in Business Process Expert

Business process expert (BPX) (customers and partners) Composite resource center Featured industry on a regular basis Discuss in the enterprise SOA forum (iCOD is a part of it) Apply for piloting composites Getting started with guiding links Cross references to other BPX areas Hit statistics for most viewed iCODs https://www.sdn.sap.com/irj/sdn/bpx-industries

© SAP 2007 / Page 24

Thank you!

© SAP 2007 / Page 25

Definition and halftone values of colors

RGB 4/53/123

RGB 240/171/0

RGB 204/204/204

RGB 153/153/153

RGB 102/102/102

Primary colors 100%

RGB 68/105/125 RGB 96/127/143 RGB 125/150/164 RGB 152/173/183 RGB 180/195/203

RGB 21/101/112 RGB 98/146/147 RGB 127/166/167 RGB 154/185/185 RGB 181/204/204

RGB 85/118/48 RGB 110/138/79 RGB 136/160/111 RGB 162/180/141 RGB 187/200/172

RGB 119/74/57 RGB 140/101/87 RGB 161/129/118 RGB 181/156/147 RGB 201/183/176

RGB 100/68/89 RGB 123/96/114 RGB 147/125/139 RGB 170/152/164 RGB 193/180/189

Secondary colors 100% 85% 70% 55% 40%

100% 85% 70% 55% 40%

RGB 73/108/96 RGB 101/129/120 RGB 129/152/144 RGB 156/174/168 RGB 183/196/191

RGB 129/110/44 RGB 148/132/75 RGB 167/154/108 RGB 186/176/139 RGB 205/197/171

RGB 132/76/84 RGB 150/103/110 RGB 169/130/136 RGB 188/157/162 RGB 206/183/187 RGB 158/48/57
Tertiary color

RGB 158/48/57

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Grid

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© SAP 2007 / Page 28