SD-001 Returnable packaging

SAP process: Returnable Packaging Processing

HABS process: Distribute Products, Manage Payments, Indirect Procurement

Supply-chain scenario: All scenarios

SAP-implementation assumptions in cluster 1
• The SAP industry solution DI-4.6C2 is not used (IS Auto)
• All kinds of packaging (returnable, customer provided, one-way packging) are described
• SAP-standard process for returnable packaging is used
•The special stock for returnable packaging is even used for the processes with direct deliveries to
the customer and to consignment stock
• SAP-R/3-4.6C is the underlying system
• Shared external stock keeper as a separate SAP plant is not envisaged
•There is one scenario for internal and external packaging flow each
•The SAP-R/3 modules SD, MM, and FI are used

Organisational assumptions in cluster 1

External stock keeper has access to SAP system and post all his transactions
Customer sends packing material back to the plant from which it originated
SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement

Supply-chain scenario: All scenarios

 Master Data :
 Customer record
 Material master (packaging)
 Customer material information record
 Vendor record (forwarder, supplier)
 Pricing conditions
 Packing instructions
SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement

Supply-chain scenario: All scenarios – External packaging flow

Variant: Customer returns to plant
Customer Forwarding
Hydro Purchasing Finance
agent
1. Execute
delivery +
packaging

Transport request

Receive Delivery Execute

goods + transport
packaging request

Send
packaging

2.Goods receipt of
packaging
For non-returned/
Pick-up order 3.Replenishment Purchase requisition damaged packing
of packaging
Collect &
send 4. Indirect 5. Create &
packaging Procurement send invoice
SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement

Supply-chain scenario: All scenarios – External packaging flow

Variant: Customer returns to forwarding agent
Customer Forwarding
Hydro Purchasing Finance
agent
1. Execute
delivery +
packaging

Transport request

Receive Delivery
goods + Execute
transport request
packaging

Send
Receives packaging
packaging

Alternativ
2.Goods receipt Notifies Hydro
of packaging

2.Goods receipt
of packaging

Send packaging
To Hydro plant
For non-returned/
Pick-up order 3.Replenishment Purchase requisition damaged packing
of packaging
Collect &
send 4.. Indirect 5. Create &
packaging Procurement send invoice
 SAP process: Returnable Packaging Processing
Activity: 1. Execute Delivery & Packaging – goods issue for packing material
No. Rule Condition/Event Internal action External action
1.1 Detailed rules are
described in the
PBB’s “Create &
Manage Shipments”
and “Picking &
Packing”.
1.2 Goods issue for Goods issue for 1. Post returnable
Hydro returnable delivery is posted and packaging to a special
packaging returnable packaging stock/special stock
is used partner (posting will be
done automatically
when goods issue is
posted for delivery)

1.3 Goods issue for Goods issue for 1. Goods issue reduces
one-way packaging delivery is posted and stock
one-way packaging is
used

1.4 Goods issue for Goods issue for 1. Goods issue reduces
customer delivery is posted and stock on customer
packaging customer packaging
is used
 SAP process: Returnable Packaging Processing
Activity: 2. Post goods receipt for returned packaging material
No. Rule Condition/Event Internal action External
action
2.1 Goods receipt of Customer / 1. Create pick-up sales order
Hydro packaging Forwarding agent 2. Enter special stock partner
without prior sends back packaging and packaging material
creation of pick-up on own initiative 3. Identify from which plant the
order packaging material originally
has been sent, enter plant
into sales order
4. Create delivery with
reference to pick-up order /
post goods receipt
2.2 Goods receipt of Customer / 1. Create pick-up sales order 2.1
customer Forwarding agent 2. Enter customer number and
packaging without sends back packaging packaging material
prior creation of on own initiative 3. Create delivery with
pick-up order reference to pick-up order /
post goods receipt
2.3 Goods receipt of Customer / 1. Create delivery with
Hydro packaging Forwarding agent reference to pick-up order /
with prior creation of sends back packaging post goods receipt
pick-up order due to a pick-up sales
order

2.4 Goods receipt of Customer / 1. Create delivery with

customer Forwarding agent reference to pick-up order /
packaging with prior sends back packaging post goods receipt
creation of pick-up due to a pick-up sales
order order
SAP process: Returnable Packaging Processing
Activity: 2. Post goods receipt for returned packaging material

Remark to the alternativ mentioned under activity 2 Post goods receipt for returned
packaging material
 If wished the packaging material returned to the forwarding agent or to an Hydro internal
storage location can be posted to a storage location called ‚Empty packaging‘
 If the packaging material is then transfered to the line where it will be used a storage
transfer posting needs to take place
 Advantage is that there is an overview which allows to see empty packaging
 Disadvantage is that an additional transfer posting needs to take place in order to have
a clean overview
 System can be customized that all packaging return orders are posted into storage
location ‚Empty packaging‘ and when deliveries take place to the customer the storage
location ‚Packaging‘ is used
SAP process: Returnable Packaging Processing
Activity: 3. Replenishment of returnable packaging

No. Rule Condition/Event Internal action External action

3.1 Stock monitoring The responsible for 1. Run transaction for stock
returnable packaging overview (including
needs a stock internal + external stock
overview + stock at customer)

3.2 Pickup packaging Monitoring of 1. Create pick-up sales 1. Send order as

material from returnable packaging order for pick-up of pick-up request
customer / ESP stocks at customer / returnable packaging to customer /
ESP shows high 2. Enter customer / ESP
stock levels and pick- packaging material /
up processing iw quantity
managed by AUS 3. Identify from which plant
the packaging material
originally has been sent,
enter plant into sales
order
4. Print order
3.4 Purchase Stock of returnable 1. Create purchase
requisition for packaging (own stock requisition
packaging materials + stock at the 2. Assign Source of supply
customer) < required
quantity
SAP process: Returnable Packaging Processing
Activity: 5. Create and invoice

No. Rule Condition/Event Internal action External action

5.1 Packaging will not Customer / ESP will 1. Create sales order for
be returned, but not return the returnable packaging
invoiced packaging and will be issue
invoiced for the 2. Enter Customer/ ESP,
packaging packaging, quantity,
prices
3. Create delivery (with
reference to the order)
as a basis for goods
issue and invoicing
4. Post goods issue
5. Inform local finance (via
billing due list)
SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement
Supply-chain scenario: All scenarios

Returnable packaging consists of material which are stored at

Hydro‘s and customer location (customer or special stock
partner).
SAP returnable packaging functionalities offers the possibility to
track stock movements and give an overview where the stock
is currently stored.
Returnable packaging stock is valuated if it is owned by Hydro,
non-valuated for customer owned stock (differentiated by
material type)
 SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement
Supply-chain scenario: All scenarios

1. Returnable packaging 2. Returnable packaging 3. Returnable packaging

shipments pick-up issue

1. Customer sales 1. Returnable 1. Returnable

order / scheduling packaging pick-up packaging issue
agreement order order

2. Delivery creation + 2. Delivery creation 2. Delivery creation

packing for packing material for packing material

3. Post goods issue

3. Post goods receipt
3. Post goods issue

4. Packing material
stock posted from
own stock to
customer specific 4. Invoice creation
stock for packing material
Finished good stock
is reduced

5. Invoice creation
for finished good
SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement
Supply-chain scenario: All scenarios

Inventory changes:
1. Returnable Packaging Shipments
 When posting the delivery goods issue, the returnable packaging quantity
is taken from regular inventory and added to the special stock for the
customer (by customer number for customer owned packaging/by special
stock partner for Hydro owned packaging)
 The total stock remains the same
2. Returnable Packaging Pick-Up
 When posting goods receipt for the delivery, the customer stock is
reduced and added back into the regular stock at the plant where the
goods are returned
 The total stock remains the same
3. Returnable Packaging Issue – necessary if
 Customer keeps packaging
 Customer damages packaging
 As a result the customer special stock and the total plant stock is reduced
SAP process: Returnable Packaging Processing
HABS process: Distribute Products, Manage Payments, Indirect Procurement
Supply-chain scenario: All scenarios

Special stock is tracked on:

 Ship-to party level (customer owned packaging material)
Or
 Special stock partner (additional partner role in customer
master record for Hydro owned packing material)

One special stock partner to be used for each customer instead

of each single ship-to partner (only for Hydro owned packing
material)