Managing Core Return from Customer

Outcome

A credit invoice is sent to the customer. The amount of the credit is based on the following:

• The condition of the returned core
• Whether the core is returned late according to the agreed time in the core terms.

All core transactions are updated in core entitlement table (MITCEN) and can be viewed in 'Core Entitlement. Open Toolbox' (MWS090).

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 .

Follow these steps

1. Receive core

   When you first created the customer sales order, a return record was automatically created with a reference to that order. When the customer returns the core, you report the core in 'Customer Return. Open' (OIS390) with reference to the previously recorded return record.

   You select a stock location for the inspection of the core in 'Customer Return. Open Line' (OIS391).You also enter the actual return date in order to create a refund reduction according to the core terms.

   You must define a serial number if the returned core is serialized. Select related option 15 in (OIS391). 'Equipment. Update History' (MOS290) is displayed. In (MOS290) you can create the serial number, and specify meter readings and service history for the individual serial number.

   The core entitlement table (MITCEN) is updated and can be viewed in 'Core Entitlement. Open Toolbox' (MWS090).

2. Create inspection document or work order

   The returned core must be inspected to determine its condition. For more complex components that must be disassembled before you can do an inspection, a maintenance work order must be created for a more thorough inspection. You create a work request by selecting related option 14 in 'Customer Return. Open Lines' (OIS391) to display 'Work Request. Open' (MOS170). In (MOS170), you specify the service needed for the inspection and you create the required work request.

3. Report condition of returned core

   The result of the inspection of the returned core determines the attribute to be used when you create a customer credit in 'Customer Return. Display Inspection Result' (OIS392).

4. Create credit order

   When the component is delivered and inspected in (OIS392) and has status 33, you can then create a credit order by selecting F14='Update' in 'Customer Return. Create Crediting' (OIS393). You can create a credit order only after the condition of the returned core is determined. The credit order is created as a batch customer order.

   Note:  If the core has been used on a work order connected to an MCO, the invoice specification (COS170) for that MCO will be updated with the core return. Also the work order operation and material (MOS101) will be updated with the core return. When the MCO is invoiced, the core return will be included in the normal invoice.

   If the connected MCO is already invoiced when the return of the core is performed, a new MCO line for the core return will be created and a credit note for the return can be issued to the customer.

5. Invoice credit order - if not connected to MCO

   The credit order is normally invoiced in a batch run. The value of the credit is based on the condition of the returned core. For example, if the condition of the returned core is "in full condition", 100% of the core charge is credited according to the reduction rules.

   The credit can be reduced if the core is returned later than defined in the core terms. The core terms are printed on the credit invoice.

   The core entitlement table (MITCEN) is updated with the status settled.

6. Create account entries

   Accounting transactions are generated.