MAE Question:

The customer will return the item to store. The store will not yet check if the item is defective or not. From store to
WH, we are using STO PO without delivery to transfer the stocks. Once WH received the item, they will do the
quality check and if the item needs repair, they will forward it to vendor. For commercial items, we are not paying
the vendor for repairs as it is still under warranty. However, if the vendor could not return the item within a
month, they will issue a credit note.

Here I have taken the stock transfer into account and the vendor return or free repair, if material
is under warranty
So, while return we will not change the valuation of material until it will be inspected at
warehouse, only once inspected discussion of vendor return or refurbishment will be taken

Sales:
Sales order: 266

Delivery: 80000108

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Billing: 90000078

Return Sales

Return sales order: 60000024

Without changing the valuation type

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Return delivery: 84000019 (stock will be in return stock there is no accounting document, so
when we bring the stock to own stock for transferring it to warehouse then the accounting will be
posted)

Billing: 90000079

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Transfer posting from return stock to own stock.

Will do 453

Material Document 4900000266

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Now we will transfer this material with serial number 14 to warehouse P030 from store 4000 using STO.

STO: 4500000231

Good Issue: 4900000267

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Good Receipt at Warehouse: 5000000164

Stock:

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Once we have this material at warehouse, this can go under inspection. If it is still under-warranty with
vendor in that case it can be returned to vendor with return PO. Or otherwise it will go for
refurbishment process or Scrapping

Case 1 return to vendor if under warranty

Return PO: 4500000232

Posting GR:

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Raising Credit Memo: 5105600152

Case 2: refurbishment which already shared in previous document.

But before that process we need to change the valuation type of the material, this we can do with the
transfer movement 309.

Transfer Movement: 4900000268

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Now we have this material under Defective Batch and refurbishment Process as explained earlier with
subcon PO can be carried out,

However in case if you don’t pay anything to vendor (under warranty) then we can use free good
indicator , cycle shown below:

Refurbishment PO: 4500000233

Stock provision to Vendor: 4900000269 (541)

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GR from the vendor: 4900000269

This posting will generate AP equivalent to Standard price maintained in the material under valuation
type DEFECTIVE

Stock check:

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Now this material again can be transferred to Store via STO and then can be sold again.

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