Selling a Remanufactured Component and Processing the Customer Return

This document explains how a remanufactured component is sold to the customer and at a later stage returned and exchanged to a new component. When you sell the component, it is defined as remanufactured and as because of this, a worn component is expected in return.

Scenario story

Previously, a customer purchased a core item from the dealership. The customer now returns to the dealership and requests a new core, since the old one is worn out.

A Core is defined as a component or subassembly such as an engine, gearbox, or fuel pump that can be rebuilt or remanufactured and is often available as part of a dealer exchange program.

When the new item has been delivered, the worn part will be returned and inspected to determine the condition. After inspection, the dealer will provide a partial or full credit to the customer depending on the condition and the used core will be returned to the supplier for remanufacturing.

You sell the component or the remanufactured component in 'Customer Order. Open' (OIS100).

Outcome

The component is sold and an invoice is created with core terms. Accounting transactions are created and sales statistics are updated.

When the component is worn out, the customer returns the component. The component is either remanufactured and returned, or a new component is sold to the customer.

The core entitlement table MITCEN is updated with core transactions.

A Core Entitlement is created between customer A and supplier X, when A purchases a product from X and where the product sales price includes a core charge. A then undertakes to return the core to X in order to receive the core refund.

Before you start

You must define the settings described in Defining Settings for Component Exchange with Customer in Core Management Process and Defining Settings for Component Exchange with Supplier in Core Management Process.

Follow these steps

  1. Create Customer Order with Attribute Remanufactured:

    You create a customer order in 'Customer Order. Open' (OIS100). When you enter the attribute-controlled item in 'Customer Order. Open Line' (OIS101), you must select an attribute. In this case, you select the attribute Remanufactured.

    When you create a customer order with an attribute-controlled item, the following activities automatically occur:

    • A core charge line is created.

      The discount model that contains an attribute combined with an item or item group sets the core charge on an additional customer order line.

    • A customer return record is created.

      The core charge is defined as a non-material item with the field 'Non-material type' in (MMS001/G) set to 01='Core trigger'. This results in an automatically created customer return line in 'Customer Return. Open' (OIS390). The price is retrieved according to the discount model and the attribute Remanufactured. The expected return date is set according to the core terms defined in 'Core Terms. Open' (CRS168).

    • Core entitlement is updated.

      A record in the core entitlement table (MITCEN) is created where you can track the core transactions.

  2. Deliver Component:

    The component is delivered from stock when a picking list is reported. The status on the customer order is raised to 66='Delivered' and the core tracking table is updated. Internal account entries are created.

  3. Invoice Customer Order with Core Terms:

    When the customer order is invoiced, the component price and the core charge are included. The core terms are stated on the invoice describing the conditions for the expected returned core.

  4. Create Account Entries:

    Accounting transactions are generated.

  5. Return exchange part:

    The return of the worn core is initiated from 'Core Entitlement. Open Toolbox' (MWS090) and processed through 'Customer Return. Open' (OIS390).

  6. Inspect Goods:

    The inspection process determines the condition of the used core and how much credit the customer receives. The inspection result is reported in 'Customer Return. Display Inspect Result' (OIS392), which is a related option from (OIS390).

  7. Create Credit Invoice to Customer:

    The credit invoice is also generated from (OIS390) using related option 14='Crt credit'.

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