This document outlines the process for handling customer returns and repairs within an SAP system. It involves creating a notification for the returned item, generating a repair sales order, receiving the returned item through a return delivery, issuing a goods receipt, creating a service order from the repair order, adding operations and components to the service order, confirming the service order to issue components, and viewing the goods movement and accounting entries. The overall process manages the repair workflow from initial customer return to component issue for repair work.

1. On receiving customer complaint or return component for repair process, notification needs to be
created by business wherein information below can be entered like-
 Cause Codes
 Defect Codes
 Different activities can be entered which needs to be preformed to repair the products
 Priority
 Incoming / Outgoing Calls etc.
Warranty validation is carried out within notification if equipment master has got warranty dates &
system correspondingly gives a message if the repair product is in warranty or not.
Transaction Code – IW51
Notification- 300000104
Notification type needs to be entered (Z4) as indicated below-
3.2 Creation of Repair Sales Order
Within notification, mandatory fields as indicated below can be entered and then repair order needs to
be clicked within the action box on the right side-

2. This will give the pop up wherein repair sales order type, service material needs to be entered, and
save this as indicated below-
This generates the repair sales order & can be seen in the document flow of notification-

3. SO-109000054
We check this repair sales order in VA03 Transaction code, note the repair button at the bottom-
We can see in the repair tab there is one repair item we need to receive-

4. 3.3 Return Delivery
To receive the repair material, we create returns delivery using Transaction code VRRE, below details
needs to be put-

5. Check the details in the returns delivery-
Return Delivery - 7008500050
3.4 Goods Receipt against Return Delivery for Repaired Item
Now, Goods receipt for the repair material needs to be done using VL02n transaction code as
indicated-

6. Pl check the document flow for material document-
Check the movement type used for return material-

7. Pl see above that this is non valuated material and there is no financial postings.
3.5 Service Order Creation from Repair Order
Now we create the service order for this return material from sales order VA03 transaction, hit the
proposal button below as indicated-

8. This calls for the task list (list of work centers maintained for the service material)-
Confirm the availability control, save the Sales Order, which will create the service order in the
background.
To check the service order, hit on button below as indicated in VA03 Transaction code-

9. System would take you to IW33 transaction code where you get to see the service order created.
Service Order – 4000084 is created. Service Order can be seen below in transaction IW33-

10. 3.6 Service Order Updation with Operations, Components & Settlement Rule of
Cost Centre
Now, based on the requirement to repair the returned product, put in the operations required-
Add on components can also be put in which would be required for the repairing of returned product-

11. We update the settlement rule-
Cost Centre needs to be put for service / repair process; this is where cost of operations &
components would be settlement-

12. 3.7 Service Order Confirmation
We come to IW42 transaction to confirm the operations and issue the components to service order as
below
Save this. You can check in service order (IW33) to check the goods movement of components

13. You get the material document. Pl check the movement type and accounting document-
Goods issue accounting entries are as below-

14. In the cost tab of service order, we can check the costs-
Planned & actual costs are displayed-

15. You may refer a separate post for Part II for Settlement, Delivery & Billing Process.