Return & Clarification

Returns are posted for payments which fail to get realized at the bank. Return lots are posted as per the file received from the bank/payment vendors. Failed returns go into the return lot clarification list for manual correction.

Return reason, Reason activity, Return charge

Here, we can configure the return reason

• The returns reason specifies the company-specific reason for a return.
• A business partner's creditworthiness provides information about the payment history. Creditworthiness is used for returns, correspondence and dunning. In this way, charges can be made or dunning activities carried out for a business partner that is based on creditworthiness
• G/L account to which a posting is made if the return cannot be posted as planned and clarification processing is required. If there is no clarification account specified for an item to be clarified, the clarification account stored in the system is used.

To create a new return reason, proceed as follows:

1. Define the return reason.
2. Maintain the settings for the return activities.
3. Define currency-dependent lot charges.
4. Define the maximum permitted difference amounts for each currency.

Give the return reason and name below

• Return type: The type of return is defined, such as a bank or check return Automatic account assignment uses the return type to determine the G/L accounts for the return charges and the bank clearing account.
• Creditworthiness: A business partner's creditworthiness provides information about the payment history. Creditworthiness is used for returns, correspondence and dunning. In this way, charges can be made or dunning activities carried out for a business partner that are based on creditworthiness. The best creditworthiness value is 0. This means that the business partner has a good payment history and has, for example, not been sent a dunning notice in the last few months. The worse the payment history of a business partner is, the higher the creditworthiness value
• The application form is nothing but a layout of the form which needs to be printed.
• Clarification account: G/L account to which a posting is made if the return cannot be posted as planned and clarification processing is required.

Return activity

• The number of returns is determined from the return’s history for the history days (observation period) defined in Customizing. The number always refers to a business partner and a contract account.
• No. of returns: The number of returns is determined from the return’s history for the history days (observation period) defined in Customizing. The number always refers to a business partner and a contract account.
• Deferral days: The date on which an item is due for payment without deduction of cash discount. Number of days that a receivable is deferred if a return has occurred for the payment.
• We can put the lock and duration in the return reason.

• Post charges statistically: Line item which does not result in postings to the general ledger and is treated only as a noted item in Contract Accounting. This means that charges receivable to a business partner are only posted statistically.
• Calculate graduated charges: You set this indicator to calculate a charge markup in addition to the bank charges for a business partner. The amount of the graduated charge depends on the amount of the return.
• If we want to delete the payment method from the customer's account based on the history of the customer. You can select the checkbox. For example, if the customer using an incoming payment method but the account is empty when the debt is coming to the customer's account. ie, If the return happened twice, we can select the delete incoming payment method. Directly delete the incoming method from the account.
• When the return happens, select 'Create correspondence' to inform or create correspondence for a particular return reason.

Assign Return Reasons to House Banks

In this activity, you define a company-specific return reason for each house bank return reason for your house banks. Define the bank-specific return reasons for each house bank and assign the company-specific return reasons.

House bank return reason: The house bank's return reason indicates the bank-specific return reason for a return. A company-specific return reason is assigned to each house bank return reason in Customizing. When processing a return lot, this house bank return reason is then sufficient for the system to be able to determine the company-specific return reason. When the return lot is posted, the activities defined for the company-specific return reason are then carried out.

Define Bank Clearing Account for Returns

In this activity you define the bank clearing accounts for returns. To activate the account for returns lots, select the field Valid for Returns.

Define Clarification Accounts for Returns

Here, defines a clarification account for each house bank and returns the reason.

Determine Document Type and Clearing Reason for Returns

In the FP09 screen, if you want to set the default value you can set the function here.

Define Field Selection for Returns

Create variant for returns 

In FP09,

Converting files from third-party

The third-party (Bank) will create a file to return the payment amount from the customer account. It may contain the Date, Business partner, contract account and return amount. PO will take the file and put it into a SAP AL11 directory. SAP couldn’t read the file which the third party sent. So, SAP will convert the file to SAP readable format using a custom program (each client needs a different format. Based on that will create the custom program and use it for conversion). Once the conversion is completed, use another program to create a return lot.

a) Use of the RFKKRLDG program

The RFKKRLDG program is used to create sample files in SAP readable format. This report generates a test file for the returns lot transfer program.

A sample file is created.

FPB5 and FPB6 transactions

This report transfers data and uses it to create one or more return lots. To do this, it executes the following steps:

• The report reads the specified application server file and checks the data contained therein.
• It creates one or more return lots as long as the data records are correct.
• It closes and posts the returns lots created as long as the appropriate indicator is set.

Data records that contain errors are saved separately and can be transferred after they have been corrected.

We can use FPB5 transactions to post the return lot. If we get any error when we run FPB5, we can run the FPB6 transaction to correct the error. 

FP09 and FPCRL transactions

Return lot: The returns lot is a central object in returns processing. It is essentially a grouping of documents that were sent back by the house bank and are settled with the same bank clearing account.

Create the return lot:

Save the details after giving the return reason and document number.

Close and post the return lot.

FPCRL- To clarify the return lot.

We can see the error message when we are expanding the clarification.

Reverse the cleared item and click on the post.

We can see the message with the document number. Clarification case status also changed to Completed.

Following the above process, we shall be able to post returns. If the information is incorrect, it will be posted to clarification. Using the return clarification process, the return can be clarified against the right payment document.