1. What is Sales Return?

Sales Return is the process of returning the purchased goods by the customer because of various reasons, such as damaged during transportation, inferior quality, overstocking, less or no sales uptake, or winding up of business by the customer (e.g., in case of trader or dealer). In these situations, a customer returns the goods purchased. As per the business agreement between the organization and customer, a credit note is issued in the name of the customer to settle the accounts.

2. What do you exactly mean by Credit Note and Debit Note?

Credit NoteThis is a kind of billing that you generally raise when you need to credit a customer because of a sales return or an extra incentive or bonus offered.

Debit NoteThis is a kind of billing that you need to charge a customer for reasons such as delayed payment made by the customer or check dishonor penalties.

3. Explain the system processing of Sales Return.

The process of Sales Return is the opposite of the process of sales. Sales Return is basically a process in which a customer returns the goods sold to him by your company for any business-related reasons. A return order is created (standard return order type is RE); then return delivery is created by performing the "post goods return" activity; and, then, a credit note is issued for that particular customer, thereby crediting the customer account.

4. Is a shipping point assigned to a plant used during the process of Sales Return?

Yes, a shipping point is assigned to a plant works as a "goods receiving point" for return delivery creation.

5. Can a Sales Return be denied for a credit note to a customer?

Yes, it is quite possible. This happens when the sales organization is not convinced by the reasons provided by the customer for sales return. This may also be possible if a sales return is not part of an agreement between the sales organization and the customer.

6. Can an additional scheme be issued to a customer through a credit note?

Yes, an additional sales scheme can be issued to a customer by issuing a credit note to a customer. This may be based on the predefined or later defined understanding for a sales promotion between a sales organization and a customer.

7. What is a Return invoice?

A Return invoice is a credit memo issued to a customer for a sales return.

8. What is the process of charging the customer in the case that a customer does not return the returnable packaging material?

A sales order is created, and then a debit note is issued in the name of the customer for not returning the returnable packaging material.

9. What is the effect of a sales return on the inventory of material?

When you generate a "post goods receipt" at the time of creation of a return delivery, the inventory of the material is updated in the system. But, as per customization, the sales return stocks could be kept in restricted stocks inventory. This configuration setting is basically done to avoid the further sales of such stocks because this stock might have been returned for specific reasons, such as damage during transit or some quality-related issues. To bring back this stock to unrestricted stock inventory as per business planning, the materials management module has to generate a transfer posting process by using the Movement Type 453.

10. How are the goods returned by the customer handled?

The goods returned from the customers are adjusted along the sales order RE. The sales orders for the goods returned are prepared with reference to the billing number.