Revamp Your Exchange Process with SAP Order to Cash

  • by Saleel Kane , Manager – SAP Service Line, OTC Capability, Capgemini US LLC
  • July 18, 2014
Learn how to exchange or replace a product and have both on the same sales order, enabling a quicker response to the customer that results in lower costs and enhanced customer satisfaction.
Learning Objectives

Reading this article you will learn how to:

  • Use standard Order to Cash functionality for  a consolidated exchange process
  • Increase efficiency during customer handling
Key Concept

The consolidated exchange process is an exchange process that combines many steps of a typical SAP functionality. It consolidates these typical SAP processes: return order, return delivery, goods receipt, free of charge order, free delivery, and goods issue.

Consumers sometimes tend to rethink or revisit a decision after buying a product. More than one option can put consumers in a tight spot when they are trying to decide which product meets their needs. On the other hand, sometimes a product has a problem or a defect, or there is a wrong shipment that needs a replacement. Such situations can arise in retail, software, or any distribution industry.

For instance, a retail product comes in different colors with the same price. One color is ordered, and the customer changes his mind and wants another color instead. Another example is a software product that was shipped for Windows 7 compatibility, but the order really was for Windows 8 compatibility. Both products have the same price, but different attributes.

Both the scenarios above require an exchange. The purposes in both scenarios can be different, however. The first scenario relates to customer choice and the company’s return policy, whereas the second one relates to the company’s reputation to replace a defective or wrong product. However, both are related to customer service, which is the key.

For achieving an exchange, a standard SAP system allows for returning a product and subsequently shipping another product free of charge to the customer. This is a standard sales and distribution (SD) order-to-cash (OTC) functionality that essentially involves two processes:

  • Creating a return order, return delivery, and goods receipt
  • Creating another free-of-charge order and delivery and goods issue, and sending a replacement delivery for no charge. 

However, with changing business scenarios and the desire to offer a quick exchange mechanism, a more efficient exchange order process may be required. The standard process consists of two separate processes (both in SD): returns and free delivery. I explain how to combine these two processes in a single sales order.

Saleel Kane

Saleel Kane is an accomplished SAP professional with expertise in the SAP SD and SAP Order to Cash functional area with more than 12 years of experience on projects across various industries, such as electronics, high-tech, manufacturing, retail, automotive, pharmaceutical distribution, and software.

He is an engineer with an MBA, and his experience includes SAP projects, business development, sales, marketing, and logistics across different regions in the US, Singapore, and India. 

Click here to access his LinkedIn profile.

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