Returns and Complaints (incl.QM and Batch Recall)

1. Returns and Complaints (incl.QM and Batch Recall) SAP Best Practices for Chemicals

2. Purpose, Benefits, and Key Process Steps • Purpose • The scenario contains the following processes: • Complaints without physical material return (Credit memo/Debit memo) • Returns • Returns with QM • Returns with Warehouse Management • Returnable • Quality notification for customer • QM in Sales: Returns inspection • QM in Sales: Batch recall • Benefits • System integrated processing of Customers Returns and Complaints • Integrated follow-up process for recall to the former delivered batch • Returnable containers process from customer covered in detail • Return stock checked for quality and managed separately from the rest of your stock

3. Purpose, Benefits, and Key Process Steps • Key Process Steps • Creating Credit Memo (Quantity) (The Claims/Complaints Process) • Releasing Credit Memo to Billing • Billing • Creating Debit Memo (Quantity) • Creating Credit/Debt Memo (Quantity)/(Value) • Returns Process with QM • Change Sales to Company (in Container) • Container Return • Creating Quality Notification for Customer Complaint • QM in Sales – Returns Inspection • Scenario (A) Return from customer with delivery • Scenario (B) Return from customer without delivery • Inspect rest of batch still in stock • Sales Activity – Mailing Campaign • Generate follow-up Sales Activities • Processing Follow-up Sales Activities • Billing (Credit memo)

4. Required SAP Applications and Company Roles • Required SAP Applications • SAP ECC 6.00 enhancement package 5 • Company Roles • Sales Administrator • Billing Administrator • Quality Specialist • Warehouse Clerk • Warehouse Manager • IT Administrator (Professional User)

5. Process Flow Diagram Complaints without physical goods return Event Customer Keep Material but Requests a Lower Price for Small Quality Issue Fees and expensed paid in advance by Vendor Customer Credit (Debit) Memo Billing Administrator Billing Sales Administrator Remove Billing Block Credit Memo Request Debit Memo Request

6. Process Flow Diagram Returns (with physical goods return) ,Complaints and Returnable Container Process Event Customer Needs to Return Product Sales Order Processing (921) Sales Order Process with subsequent Returnable Item (container or pallets) Complaints Sales Administrator Creating Returns Display Batch for Return Releasing Returns to Billing Create Sales Order Create Sales Order for the Return Warehouse (Clerk) Create Delivery (Clerk) Display Container Stock (Clerk) Creating Returns Delivery (Clerk) Display Container Stock (Manager) Display Container Stock (Clerk) Posting Returns to Unrestricted or Blocked Stock (Clerk) Create Delivery and Picking Billing Administrator Billing Creating Billing for Filled Containers Quality Specialist Creating Quality Notification for Customer Complaint Create Usage Decision Inspecting Goods Receipt

7. No Yes Yes Yes No No Process Flow Diagram QM in Sales – Returns Inspection Event Return from Customer with delivery? Sales Order Processing (921) Complaint of Customer Sales Administrator Scenario (A): Return from Customer with Delivery Quality Specialist Scenario (B): Return from Customer without Delivery Inspection Plan Exists? Results Recording Quality Inspection Goods are OK? Usage Decision Defects Recording Procedure A1 Procedure A2 Accept? Scenario (C): Inspect Rest of Batch Still In Stock Usage Decision Warehouse Clerk Move Material to Unrestricted Stock Move Material to Block Stock

8. Process Flow Diagram QM in Sales – Batch Recall Event Sales Order Processing: Sale from Stock (921) Defect Batch Must Be Recalled Customer Customer Letters Customer Returns Material Sales Administrator Create Direct Mailing Generate Follow-up Sales Activities Return Order Process Follow-up Sales Activities Create Return Order Address List of Customers Who Received Batch Billing Administrator Release Credit Memo to Billing Billing Warehouse Clerk/Quality Manager Return Delivery Assign Serial Numbers Post Goods Receipt Assign Batches

9. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision