Defining Settings for Component Exchange with Customer in Core Management Process

Define an Attribute Model

Specify the ID of the attribute model and a description on 'Attribute Model. Open' (ATS050/B). Select related option 11='Model lines' to start 'Attribute Model. Connect Attributes' (ATS051).

On the B panel in (ATS051), create one attribute for the sales process that will indicate different attributes for retrieving sales prices and discounts for the sold component.

On the E panel in (ATS051), specify the following values:

Attribute type = Alphanumeric
Controlling object = Lot master
Main attribute = Attribute 1, for example

Select the processes in which the attribute should be included, for example customer order, manufacturing order and purchase order.

Create an attribute for the condition (the state of wear and tear) in the same way. This will determine the costing of the sold or returned core. You select '1-Cst attribute 1' in the 'Cost attribute' field on the E panel in (ATS051).

In (ATS051), select the related option='Attribute values' to start 'Attribute Matrix. Open' (ATS020) and specify the attribute values in 'Attribute Matrix. Enter Values' (ATS021).

Example of attribute values for sale:

Remanufactured
New
Used equipment

Example of attribute values for condition:

As new
Before failure
After failure
50% of full core
No refund

Define a Sales Price List

Create price list 'Sales Price List. Open' (OIS017).

Define a sales costing model for core charge calculation

The sales costing model used for calculating the core charge is defined in 'Sales Costing Model. Open' (OIS022) and connected to the core item on 'Item. Open' (MMS001/K).
There are three sales costing operators intended for core charge calculation that can be included in the sales costing model for core.
- Operator 76 is used to add markups/markdowns calculated as a percentage of the gross sales price on the core item order line.
- Operator 77 is used to add fixed markups/markdowns per basic U/M. With this operator Item number and Attribute ID must be used as selection fields.
- Operator 78 is used for core aging reduction. The aging reduction setup is defined on the core terms in 'Core Terms. Open' (CRS168).

When using the above operators in the sales costing model for core, it is recommended to setup the model with a sales calculation base of 8. It is also recommended that the last element in the model represent the total (Operator 00).

Define a price list table

Create a price list table and connect to the customer in 'Customer. Open' (CRS610).
On 'Sales Price List Selection Table. Open' (OIS831/B), the item type for core items from 'Item Type. Open' (CRS040) must be connected.

Define Sales Price Calculation Settings

A record must exist in 'Settings – Sales Price Calculation' (OIS330) for the facility you are selling core parts from, otherwise core charge is not retrieved.

Define customer order type

A credit order type must be setup in 'CO Types. Open' (OIS010). This is used within the customer return process.

Define Settings for Core

You define core terms in 'Core Terms. Open' (CRS168). To perform the core process you must populate these fields on the E panel:

Attr ID purch
Attr value purch

The values you specify in these fields must be used in the attribute model of the item that has current core terms.

General terms for customer orders, purchase orders and work orders:

'Core terms' – The core term ID is user defined and indicates the ID of the terms for the core return. The terms include information such as description, aging and return date.
'Language' – You can define the terms for each division and language.
'Name' – Standard field for giving the terms a name.
'Terms text' – A description of the terms. This text is printed on the customer order invoice.
'Start date code' – The start date used to calculate the return date of the core. The date can be calculated from the delivery date or from the invoice date.
'Refund limit days' – The number of days when no refund is given. The date for no refund is calculated based on the start date code.

Customer Terms:

'Return customer' – The number of days from the start date after which the core must be returned by the customer. After the calculated return date, the aging reduction is activated.
'Aging reduction' – The percentage by which the refund is reduced based on how late the core is returned. The percentage uses two decimal places. The reduction is calculated based on the aging reduction method.
'Aging reduction method' – Defines how the reduction of refund is calculated: per late day or after late return.
- 'Per late day': For each day after the requested return date the amount is reduced by the percentage defined in the 'Aging reduction' field. For example, if the core is returned two days late and the aging reduction is 2%, the amount is reduced by 4%.
- 'After late return': If the core is returned after the requested return date then the entire amount is reduced by the percentage defined in the 'Aging reduction' field. For example, if core is returned 2 days late and the aging reduction is 50%, then the amount is reduced by 50%.
'Aging text' – A description of the aging terms. This text is printed on the customer order invoice.

Supplier Terms:

'Return supplier' – The number of days from the start date after which the core must be returned by the supplier. No aging reduction is activated in the supplier flow, but after the refund limit no refund of the core can be expected.

Settings in the Item Master (MMS001):

Core item:
The core item is the item which is purchased, sold and returned by the customer, back to the supplier.
1. Specify 'Lot ctrl method' on the E panel in (MMS001). This cannot be set to '0 – Lot control not used'.
2. Enter an attribute model for the remanufactured item in the 'Attribute model' field on the G panel in 'Item. Open' (MMS001).
3. In the 'Core terms' field on the K panel in (MMS001), specify the ID of the core terms you defined in 'Core Terms. Open' (CRS168). This field is also essential for all items that are part of the core management process.
4. In the 'Core ch item no' field on the K panel in (MMS001), specify the ID of the core charge item you defined in (MMS001). The core charge item is used on the core charge line when entering customer orders. It is also used on the invoice specification when entering maintenance customer orders.
5. In the 'Core reman item’ field on the K panel in (MMS001), specify the ID of the core reman item you defined in (MMS001). The field indicates the item used by default for a core return on 'Customer Return. Open' (OIS390/A). This is used in the internal remanufacturing process when the core return is used as a raw material in the finished product. The item number used preferably has a prefix indicating its similarity to the other item in the same acceptance group.
6. Select 1='Supplier reman' in the 'Exchangeable' field on the K panel in (MMS001). The field indicates whether or not the item is available as a part of a supplier exchange program. The item is usually a larger component or a subassembly such as and engine, gear box or fuel pump, which can be rebuilt or remanufactured. This field is essential for all items that are part of the core management process.
7. In the 'Accept group' field on the K panel in (MMS001), specify the ID of the acceptance group you defined in 'Acceptance Group. Open' (CRS169). The acceptance group is used to group items which have interchangeable entitlements. A core return can be created against an entitlement for any item number within the same acceptance group. Because the core refund will be calculated for the returned part number, the core refund may be lower if the returned core is replaced from the assortment.
8. In the 'Cstng mod core' field on the K panel in (MMS001), specify the ID of the costing model defined in (OIS022). The core charge costing model is used to calculate the core charge and the core refund.
Core charge:
The core charge is a non-material item and is required in the core management process. A core charge item must be defined and connected to the discount model with the discount item. This item must have a separate item type with item category '13=Non-material item' specified on the G panel in (MMS001).
1. You must first define the item type in (CRS040). Select the item category 13='Non-material item'. This item category specified a core charge item.
2. In (CRS040) select option 11='Field control' to start 'Item Type. Select Fields' (MWS041). Configure the item type fields so that the 'Non-material type' field is displayed on the G panel in (MMS001) and the 'Exchangeable' and 'Core terms' fields are displayed on the K panel in (MMS001).
3. Field 'Inv accounting' must be '0 - No inv account' on the E panel in (MMS001).
4. In the 'Item category' field on the G panel in (MMS001), specify '13 – Non-material' since this item is a charge and not a physical item and will not be stored.
5. 'Non-mtrl type' field should be set to '01 – Core crg item' on the K panel in (MMS001).

Settings for Item Warehouse (MMS002)

Remanufactured component
In field 'Supplier' on the E panel in 'Item. Connect Warehouse' (MMS002), a supplier must be defined.

'Container mgt' field on the G panel in (MMS002) must be set to '7 – Container for Packages'.
Core charge
The core charge item must exist in (MMS002) however no specific settings are required.

Settings for Item and Facility (MMS003)

Remanufactured component
1. The costing model must be set in 'Item. Connect Facility' (MMS003). On the E panel, select '2 - Average cost' in the 'Inv acc method' field.
2. 'Attribute cost' must be activated on (MMS002/E).
3. Optional: On the F panel specify the ID of the costing model in the 'Costing model' field. This field is used to set the core price. Costing models are defined in 'Costing Model. Open' (PPS285).
Core charge
The costing model must be set in 'Item. Connect Facility' (MMS003). On the E panel, select '0 - Zero' in the 'Inv acc method' field.

Defining Settings for Component Exchange with Customer in Core Management Process

Outcome

Follow these steps