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SAP Vendor Return E2E Process Flowchart (for Defective Materials)

SAP Vendor Return E2E Process Flowchart (for Defective Materials)

Picture Description

This flowchart outlines the Vendor Return process in SAP for handling vendor-supplied material that requires in-house reworking due to poor quality. The procedure is triggered when defective material is received and needs to be rectified after being posted into the inventory system. Here’s a detailed breakdown:

  • Vendor Return (Rework) Initiation🔄: The process starts with identifying the need for in-house rework for supplier material that has been received at the store and found to be defective.
  • Production Order Creation in SAP✍️: A rework production order is created by the purchase department. This initiates the rework process formally within the system.
  • Material Issue📤: A goods issue is posted for the defective material from the store to make it available for rework.
  • Rework Operations🛠️: The defective material undergoes rework production activities, after which confirmation of these activities is recorded in the system.
  • Material Receipt (Goods Receipt in SAP)📥: Once the rework is completed, a goods receipt is posted for the reworked material against the rework production order, signifying the return of the material to the inventory.
  • Cost Accounting📊: The process also includes the collection of costs within the new production order, which helps in tracking and accounting for the expenses incurred due to rework.
  • Financial Settlement💰: The flowchart suggests a final review of pending credits with a manual check before issuing a credit memo to the vendor (represented as “GR/IR PPV Vendor”), leading to financial reconciliation.

This flowchart provides a systematic approach to managing vendor return (rework) processes in SAP efficiently, ensuring quality control, and proper accounting for reworked materials.

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