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Returnable Packaging

Implementation Considerations
Returnable packaging consists of materials that are stored at the customer location but which remain the property of your company. The customer is only required to pay you for the returnable packaging if he does not return it to you by a specified time. Using this function you can, for example, process europallets. You can also use it to resell returnable packaging to a third party. ince stocks of returnable packaging form part of your !aluated stock e!en when they are at the customer site, you must manage them in your system. "owe!er, stocks of returnable packaging must be #anaged separately from the rest of your stock so that you know exactly what stock is stored at the customer location #anaged separately for each customer

$n!entory management treats returnable packaging as special stock in your in!entory and is assigned to specific customers. This enables you to keep track of returnable packaging stock by customer.

Prerequisites Settings in the Material Master Record

% prerequisite for returnable packaging processing is that the !alue LEIH &returnable packaging' is entered in the material master record on the second sales screen in the Item category group field. This entry in combination with the document type automatically determines the appropriate item category for each transaction in!ol!ing the material.

Settings for the Special Stock Partner

You must define a special stock partner for processing returnable packaging when a third party is in!ol!ed. This means you can manage all special stock under one partner. You might use this partner function if your customer, for example, uses a decentrali(ed order processing system but manages returnable packaging centrally. You can also use this partner function to process returnable packaging when a carrier is in!ol!ed &for example, for euro-pallets'. $f you want to process returnable packaging using the special stock partner, first make the settings which are described for )onsignment tock *rocessing.

$f you want to manage returnable packaging for a carrier, for whom a !endor record already exists, you must also create a customer master record for the carrier. You are then able to assign returnable packaging stock to the carrier.

Process Flo
There are three main transactions for processing returnable packaging, all of which support separate in!entory management+

)reating Returnable *ackaging hipments )reating Returnable *ackaging *ick-Up )reating Returnable *ackaging $ssue

Returnable Packaging Shipments

,hen you sell goods to a customer, you may send the goods in returnable packaging. -uring sales order processing, you simply enter the returnable packaging as an item in your order. You can process returnable packaging either as main items or as sub-items. .or example, if you sell drinks in bottles and want the empty bottles to be returned, you can enter the bottles as sub-items for the drinks in the sales order. The item category group LEIH must be assigned to the bottles in the material master record so that they are processed as returnable packaging. -uring processing, the system recogni(es that it is dealing with returnable packaging because the item category group LEIHis assigned to the material. The system then determines another item category in the sales order to allow the material to be processed as returnable packaging. %s a result of entering returnable packaging in a sales order, the system carries out the following actions+ $f special stock does not yet exist in your in!entory for the customer &or special stock partner', the system creates it when goods issue is posted The rele!ant quantity is remo!ed from regular in!entory in your plant and is added to the special stock for the customer. The total !aluated stock for the plant remains the same. The transaction is not rele!ant for pricing since the consignment stock remains the property of your company.

Returnable Packaging Pick!"p

$f the customer returns the returnable packaging to you, you record the transaction in the system by creating a returnable packaging pick-up order &order type /%'. %s a result, the system carries out the following actions+ ,hen goods issue is posted, the rele!ant quantity is deducted from the customer0s special stock and is added back into your regular stock at the plant where the goods are returned. Your total !aluated stock remains the same since the returned stock was regarded as part of your own in!entory e!en while it was at the customer0s premises. This transaction is not rele!ant for billing.

Returnable Packaging Issue

$n the following situations, you can create a returnable packaging issue order &order type /1'+ The customer decides to keep the returnable packaging The customer damages the returnable packaging and you decide to charge the customer The customer sells the returnable packaging to a third party

%s a result of processing a returnable packaging issue, the system carries out the following actions+

,hen goods issue is posted, the rele!ant quantity is deducted from both the customer0s special stock and your own total !aluated stock. The transaction is rele!ant for billing since the goods ha!e become the property of the customer.

Sales #rder $%pes

The following table pro!ides an o!er!iew of the order types used in the standard system for processing returnable packaging+

$ransaction Returnable packaging pick-up Returnable packaging issue

Sales order t%pe /% /1

,hen you ship returnable packaging to the customer, you do not need to use a special order type. The transaction is a normal business transaction and you can use either a standard sales order or, if appropriate, a free of charge deli!ery.

Pricing and &'ailabilit% Check

,hether pricing is carried out for the indi!idual transactions depends on the item category. The schedule line category controls the a!ailability check and the transfer of requirements in each of the transactions. The schedule line category itself is determined by the item category and the #R* type of the material. The order types L( and L& check against returnable packaging for the rele!ant customer. Requirement records for returnable packaging stock are stored as indi!idual requirements, independently of the setting in the material master record.

Returnable Packaging and Empties Handling

Returnable packaging is packaging stored in the customer0s warehouse but still the property of your company. The customer is not obliged to pay for the packaging unless they do not return it by the agreed time. This scenario enables you to process how empties or euro-pallets are consumed or returned, for example. $t also contains functions for selling empties on to a third party. 2ecause returnable packaging is part of your stock, you must record the stock le!els in your system. "owe!er, you must+ Record the consignment stock separately from other stocks, in order to keep an o!er!iew of what is in the customer0s warehouse. Record separate stock le!els for different customers.


The scenario for processing returnable packaging and empties is only for picking up and issuing returnable packaging. hipping returnable packaging takes place as part of normal sales order processing and has only been described here for the sake of completion. You can only use this scenario in con3unction with other sales scenarios. The following R45 components are integrated into processing for returnable packaging and empties+ S&P Component ales hipping Transportation 2illing Functions ales 6rder *rocessing -eli!eries, goods issue and receipt Transportation planning and processing -ebit memo processing

Process Flo
Returnable packaging and empties processing consists of three different business transactions+ Returnable packaging shipment Returnable packaging pickup Returnable packaging issue

Returnable packaging shipment 7. You create the returnable packaging as a separate item in the sales order. The following functions are a!ailable+ - %!ailability check - -eli!ery scheduling - Transfer of requirements to demand management 8. You trigger shipping processing by creating deli!eries from orders that are due to be shipped. The system checks both the a!ailability of the product and the !alidity of the shipping deadlines. 5. $n picking, you remo!e goods from the warehouse and prepare them in the picking area. 9. :oods issue is the final step in shipping. $f there is no special stock &or special stock partner' for the customer, the system creates one automatically when goods issue is posted. The appropriate quantity is posted from the standard stock and added to the customer special stock. The total !aluated stock in your warehouse remains unchanged. ;. You can use transportation planning to group together the deli!eries that are due to be transported. <ssential planning acti!ities are determining shipping deadlines and means of transport, and assigning routes. =. Transportation processing allows you to follow the transportation acti!ities that take place after planning. >. This transaction is not rele!ant for billing because the customer0s special stock still belongs to your company.

Returnable packaging pickup 7. This is for returning packaging. To do this, you create a suitable order &returnable packaging pickup' containing the returnable packaging items. This will gi!e you an o!er!iew of the packaging in the customer special stock when you use an a!ailability check. 8. <nter the picked up or deli!ered packaging as a returns deli!ery in shipping. 5. ,hen goods issue is posted, the quantity is posted from the customer special stock and posted to the normal stock of the plant, to which it is being returned. The total !aluated stock remains the same because the returned goods ha!e always remained part of your stock, e!en while at the customer. 9. This transaction is not rele!ant for billing because the customer0s special stock still belongs to your company. Returnable packaging issue 7. $f the customer damages or keeps the returnable packaging it is in!oiced to them. You then create an order for returnable packaging issue with the returnable packaging items. 8. You ha!e to create a deli!ery in shipping in order to be able to post goods issue. 5. ,hen you post goods issue, the quantity is taken both from the customer special stock and your own !aluated stock. 9. )reate an in!oice for the deli!ery because the packaging now belongs to the customer.