Warranty Claims – Dealing with a Vendor Warranty

Thanks to all of you that have commenting on some of posts.  I recently got a comment that I figured would be better to do a post on, rather than just answer the question.  It’s interesting, because the question that came up seems like it would be pretty standard, yet I haven’t run into the actual scenario before.  The scenario is that I have a part with a vendor warranty.  The part comes back to me, I fix it and return it to the customer.   then I need to invoice the vendor for my repair since it was under their warranty.

Initially, when I looked at this scenario, I thought I could avoid the warranty claims altogether.  I was hoping for a simple credit memo generated from the repair line.  But you can’t change the partners here since it’s a sub-line item.  If it were me, I would want to maintain the history, so keeping my document flow together is ideal, maybe even critical depending on the business needs.  This leaves me with 2 options.

The first option is what I’ll call the quick and dirty method.  This process will have gaps that might cause headaches, but it depends on how often this occurs, and of course the terms of the warranty.  This process would be to create a credit memo request with reference to repair sales order.  Now, in the copy control, you’ll first need to allow this.  You may even consider generating a new document type specifically for vendor reimbursement.  Now, the gotcha’s begin to happen when you need to work with a  vendor, that may or may not have a corresponding customer master to assign to the document.  If you’re lucky, there is a customer master, and then this process will work for the easy stuff.  Now, the issues will arise when your credit memo to the vendor doesn’t match what they will reimburse.  Say for example, they only reimburse parts, but not labor.  If you invoice for the full amount, they may reject parts, forcing you to cancel documents, or make changes and then reissue the document, just to get paid.  In addition, you will want to make sure you assign the technical object to the credit memo request to make sure the serial number history is maintained.  As you can see, there quite a few places for this process to go wrong.  However, in a small shop where this doesn’t happen often, this may be a viable solution.

The alternative solution I’d implement is using Warranty Claims.  Now, the problem with claims is that they can be complicated and master data intensive.  But it will give you the greatest amount of flexibility and reporting.  (keep in mind, I haven’t configured this, so I apologize if miss something).  I would implement a post-crediting scenario.  I would send the reimburse the details of labor/materials/etc. along with the total amount I want to reimbursed.  Now, you won’t need to worry about interacting with the customer who owns the product.  They will deal with you through the standard return and repair scenario in SAP (since you probably already have a notification, be sure to attach it to the initial claim to be sure you maintain traceability).  If you look at my original post on warranty claims for beginners, this scenario will only need to be configured with version 2 & 3 shown in that post.  So when you configure the scenario, you don’t need to worry about the version 1 & 4, since you don’t need to deal with the customer, this is purely a reimbursement from the vendor to you.  You could go the full way, but I don’t believe it’s needed to accomplish everything needed for this scenario.

Some things to remember, each vendor must be assigned a customer master (just the way this works).  And those customers must be assigned the AS partner type to make them eligible for claims processing.  You won’t be able to avoid this master data setup.

I’ll be sure to prototype this before I finish writing my book on Warranty Claims 🙂

Thanks for reading,

Making First Impressions

Now, it’s funny, because this past weekend I had a perfect example of what not to do.  I was getting some new carpet for my Mom’s basement, and I needed someone to come in and do an install.  So, we had a guy recommended to us, so we called him up.  Very friendly, very personable, not very punctual.  So here’s a guy coming in for the first time, and he shows up 4 hours late.  Ok, that’s already less than ideal.  Then, he’s looking around, asking questions, and next up he starts up trash talking a company I had do some work previously at our place.

Now, there is just so much wrong with this first impression, it’s amazing.  First off, do what you say.  If say you’re going to show up between 8:30 and 9:00 AM, show up at 8:31.  Don’t call back at 9:30, say you’ll be there in an hour, and then show up 2.5 hours later.  It is just so obvious, but apparently, not everyone got the memo.  For most of you out there, I’m sure you don’t need to hear this…  but it’s still a good reminder.

Next up, talking about the competition.  Now, first off, never trash talk another business.  Follow that golden rule… “if you can’t say anything nice, don’t say anything at all”.  It really is that simple.  You don’t have to like your competition, but you should respect them.  After all, they are in business and if you don’t do well enough, they will start to take your business.  If you keep doing your best, then you have nothing to worry about.  But let me tell you, listening to someone badmouth a company I did business with, spent a lot of money, and was happy with their work, really left me a bit defensive.

Now, the bad thing for me is that my time was limited, so I still chose to go with this person.  I’m hoping his work is good, and he can reprieve himself from my initial bad impression of him.  Anyway, learn from this experience…  do what you say you will do, and don’t badmouth anyone.

Thanks for reading,

Marketing – How to do a Presentation

Well, I finally got back to reading my marketing book, and I learned a couple more tidbits I wanted to share.  Today I wanted to talk about doing presentations.  This could be big presentation at a conference, a small demo, or maybe even a quick one on conversation.  Like so much of what I’ve learned, it all comes back to making the presentation about your customer.  There a few simple questions you MUST keep in mind.

  1. Who is this person?
  2. What do they want?
  3. What are they searching for?
  4. What is the single most valuable thing I could possibly offer them?

Notice that pattern with every one of these questions, they are revolving around the customer.  None of them are about how I can convince my Widget is awesome, none of them revolve about being funny or dynamic.  While these can be parts of a presentation, you need to gear this around your customer.

Who is this person?  – well you have to look beyond customer, prospect, or dollar signs.  You need to see who this person really is.  What do they do in their free time?  why are they sitting there talking to you?

What do they want?  don’t think products here.  You need to go beyond the typical sales approach.  What is about the product or service that this person believes can make their life better?  is it more time at home with their family?  is it more money so they can retire soon?  what do they REALLY want?

What are they searching for?  this is similar to what they want, but it’s a little more specific to why they are listening to you.  do they need more efficiency at work?  more time at home, and less time in the office?  do they need to avoid being on the road?  or is their business in trouble and they need everything they can get to give them an edge?

What is the single most valuable thing I could offer then?  – is it efficiency?  is it time?  is it ideas?  now again, stop thinking about what your product or service offers.  Step back from that when you determine your approach in the presentation.  Think of what you can offer them…  maybe it’s a recommendation for your competitor because they do the one thing this person needs better than you.  Maybe it’s a simple idea or white paper you just read that could give them the technology they’ve been looking for.  Right now it’s all about value you can provide…  now what you can sell them.

This formula is very simple.  Build trust with this person.  Give them your best, don’t worry about selling your widget here.  Maybe your widget will solve all their issues…  but likely, they need more.  Offer them any information you have, tidbits, or any products out there that can solve their real issues.

Thanks for reading,

What to do when you realize you did things the hard way…

Well, I just got struck alongside the head with a frying pan again.  I was in the process of rebuilding my customer system, and moving in my transports.  Well, the short story is that it’s been a lot harder than it needed to be.  I broke things up into so many pieces so that it would be easier to package them when it came to sell them, but still keep them modular, so I can sell individual pieces rather than the whole package…

Well, there were so many things wrong with that whole approach, now that I finally see it.  First, I figured out I don’t need a “namespace” for ever little product I make.  I probably needed at most, 2 namespaces.  And looking back…  could’ve just done it with one.  For those SAP geeks out there, I was using the namespace like a package…  when in reality, I should’ve just been using packages :)…

Now, for the dilemma…  how much time and effort am I willing to put forth to clean this up.  Since sales have been “meager”, it means that I do still have the clean slate option to fix it before my next sale.  But even though it is a copy and paste exercise, it could be quite an extensive exercise.  So either myself, or I have to hire someone to copy/delete, copy/delete/copy delete…  for hours on end.  Now the question comes in…  where is the value add of this activity?

Well, there are some minor value adds… first off, we could shorter the names of our transactions.  Simplify the structure of everything I’m doing.  Back it a whole lot easier to share code among the different applications…  but most of it is all on the back end.  The cost of doing this is that me or someone else isn’t working on the new offerings.  looks like I need to give this some thought…

as always, I welcome your comments,

thanks for reading,

Picking a Direction – When to follow the buzzwords.

When I got together with a friend of mine, we started chatting about a lot of the latest and greatest technologies that SAP has been hyping.  Well, this all got me to thinking about when do you follow the latest and greatest  technology when you’re running a business?  Now the dilemma comes from trying to predict exactly which technology is worth following.  When technology changes so quickly, how can you possibly predict what bandwagon to jump on?

Now the challenge that I face is that I’m a small business, so obviously I don’t have the resources to follow every new path.  But, if I don’t chase some of the new buzzwords, I’ll end up so far behind the times that it’ll quickly leave my development in the dust.  So, what’s the solutions???

Well, I’m going to try a plan, and keep in mind, I’ve been perpetually behind the technology.  However, with my target market, I don’t believe it’s killed me.  At the same time, perhaps having more current buzzwords might make me more desirable as a product.  So, it seems that the only option is for me to at least investigate some of these new technologies.  In my world, it’s the cloud, Fiori and HANA.  For you, only you can tell.  But it seems that I have no choice but to build yet another system that I can install these new technologies.  Even if I just make a simple application for the one of these, it gives me the opening that I’ll need to determine if it’s a business maker, or just another buzzword.  Being in the technology business isn’t easy.  I’m learning that it truly is a bit of a gambler’s game.  Knowing when to jump into the market…  or perhaps being a leader by getting in early is tough.  As I attempt to learn about these new technologies, I’m sure I’ll have new things to blog about, so at a minimum, I’l have that going for me 🙂

I’d love to hear your opinion’s on keeping current with technology.  How do you handle it?

Thanks for reading,

SAP HANA – Hype or Here to Stay?

Well, I recently got together with a friend of mine, and one of the topics turned to SAP HANA.  Well, up to now, my perception of HANA was just a lot of hype.  It seemed like it was just the latest buzzword that SAP invented, and if you keep talking about something enough, people will buy it.  While this approach hasn’t yet worked for me, maybe I need to try it 🙂

Up to now I only knew that HANA was built around RAM vs. HDD space.  So for everything that I’ve heard, you buy a bunch of new hardware, then everything ran faster.  Well, after talking to my friend, I feel like I was right and wrong, at the same time 🙂  So, from what learned, HANA is basically going to become a replacement for the database that SAP runs on.  So instead of using Oracle, soon you’ll be using HANA.  The concept with this is that the table structures, views, etc. have been changed to optimize the structures within the database.  Since the hardware is enhanced to handle to operate with more memory, the need to have simplified structures or even views is gone, so instead the DB can handle bigger tables.

While this may be true, it still seems to me that this is technology that is geared toward new customers or installations.  It seems like this is unlikely to be embraced by existing installations, at least until they are mandated to.  Of course, I’d love to hear your opinions on this.

Just in case you’re interested in another funny opinion, check out this blog:
http://scn.sap.com/community/hana-in-memory/blog/2014/09/10/y-u-no-love-hana

thanks for reading,

Variant Configuration – ETO and STO

Well, an old friend of mine recently pinged me with a question.  The idea was how do I get my bill of material in the producing plant, if my ordering plant is in another company code.  So plant A orders the configurable product, and plant B builds it.  Plant A & B are in different company codes so you an STO is needed.  The problem is that out of the box, the order BOM for the product exists in the ordering plant.  But since it’s Engineer to Order, the BOM really needs to exist in the producing plant.

Luckily, my buddy Rama happened to have the answer for me.  It turns out, there are a couple of OSS notes that take care of this.

494500 & 691267 will tell CU51 (order bom maintenace) to look at the special procurement key and create the BOM, rather than in the ordering plant.

in addition, here’s a good link that has a lot of VC OSS tricks 🙂

http://www.stechno.net/sap-notes.html?view=sapnote&id=1394961

Thanks for reading,

Service Management – Configurable Leading Service Orders

Well, after I learned about how cool it was to combine service management and variant configuration, I did some posts a while ago, talking about exactly how it worked.  If you missed those, check them out here.  Well, there was still one gap that I couldn’t get to work.  I tend to use service with a “leading service material”, while the alternative is a “leading serviceable material”.  Well, it turns out that only leading serviceable materials can work out of the box with VC.  I worked with OSS for a couple weeks on this…  only to have it get kicked high enough up the chain to tell me “works as designed”.  However, they were nice enough to give me the standard user-exit that can be used to make it work.  So I thought I”d share that with you today.

Generally, please be aware that in a Standard repair process with
leading serviceable material, the configuration data, i.e. CUOBJ, is
only copied from the main item to the returns sub item. This is
controlled via the following coding:
FV45PFAP_VBAP_FUELLEN_HVBAP :

* for RMA return subitem (leading serviceable material) fill cuobj from * main item and fix the configuration (like in normal copy process)
if vbap-vkgru eq vkgru_rep_retoure and
vbak-vbklt eq vbklt_repa_auft.
vbap-cuobj = hvbap-cuobj.
perform configuration_fix(sapfv45s).
endif.

If you want the CUOBJ also to be copied to other sub items in the
repair order, you would have to implement a modification in
USEREXIT_FILL_VBAP_FROM_HVBAP like for example
FORM USEREXIT_FILL_VBAP_FROM_HVBAP.

if vbak-vbklt eq vbklt_repa_auft.
if vbap-vkgru eq vkgru_rep_gutschrift or
vbap-vkgru eq vkgru_rep_austauschteil or
vbap-vkgru eq vkgru_rep_auslieferung.
vbap-cuobj = hvbap-cuobj.
perform configuration_fix(sapfv45s).
endif.
endif.

The constants for the item classifications are defined as follows
vkgru_rep_retoure       LIKE vbap-vkgru VALUE ‘101’,
vkgru_rep_reparatur     LIKE vbap-vkgru VALUE ‘102’,
vkgru_rep_auslieferung  LIKE vbap-vkgru VALUE ‘103’,
vkgru_rep_leihgeraetbes LIKE vbap-vkgru VALUE ‘104’,
vkgru_rep_leihgeraetabh LIKE vbap-vkgru VALUE ‘105’,
vkgru_rep_austauschteil LIKE vbap-vkgru VALUE ‘106’,
vkgru_rep_verschrottung LIKE vbap-vkgru VALUE ‘107’,
vkgru_rep_gutschrift    LIKE vbap-vkgru VALUE ‘108’,
vkgru_rep_lastschrift   LIKE vbap-vkgru VALUE ‘109’,
so if you want the configuration to be copied into sub items of types
other the returns/101, you would need to adjust the userexit code
accordingly.

Hope this might be helpful to you.  I’ll actually be fully documenting the configuration of this process (and I’ll include this code again) in my upcoming E-book on configuring service management.  It’s been a beast writing this book, so when it comes out, I’ll be pretty excited.  If you’re interested in a copy, let me know 🙂

Thanks for reading,

Staying Focused. The challenge of writing.

Well, I mentioned a while ago that I was working on writing an E-Book.  It certainly won’t be an exciting read, but I’m hoping it will be very educational.  I’m working on writing a manual on how to configure SAP Service Management.  I originally thought this would be an easy endeavor.  I mean, I know this stuff inside and out, right?  Well, I’m discovering that writing a book is more than just knowing the story you want to tell.  You need to stay focused, and like any good project, you need to control “scope creep”.

I’ve been doing my best to keep adding new sections to fully describe the configuration, lots of screen shots, etc.  But then I get sidetracked doing some Linked-In marketing, or working with my contractors, writing new specifications, etc…  and before long, I’ve gone a week without adding any new content.  Then to compound things, I keep thinking of things to add to make the book better.

What’s the lesson?  like everything else, you have to prioritize.  For me personally, I need to break the task down into smaller pieces, and schedule those.  I’ve had one task of write the e-book.  It’s a better approach for me to write one section at a time, and thus set up smaller daily tasks of writing a section every day.  Next up is to draw a line in the sand.  If I don’t stop with the new ideas, it just becomes one more method of procrastination.

Now realization alone isn’t enough.  For me, I need to act on this new knowledge.  So I literally just went to Remember the Milk, and changed the task to do a daily section of the E-book.  A manageable task, rather than a monumental one 🙂

Thanks for reading,

Nighttime Reading

I recently learned that one of the habits I’ve gotten into is actually detrimental to my sleep.  If I don’t stay up too late doing something else for work, I often pull out my latest sales or marketing book and read till I fall asleep.  The problem that I started to realize is that I’d often get a new insight from reading, and instead of falling asleep, my brain would start churning about my latest idea, and keep we awake even though I was dreadfully tired.  It’s funny, but looking back it should’ve been obvious.  But like so many things in my journey, nothing is obvious until it’s pointed out to me… sometimes multiple times.

Well, I reading Perry Marshall again, and it finally hit me.  He said to read something light, read some fiction, read something that has nothing to do with business.  The reasoning for this is twofold.  First and most important is that it allows your brain to shut off before bed.  You can focus on something else and allow your subconscious to do the job it’s meant to do…  be creative.  But sometimes when you force work over and over again, your subconscious can’t be creative, it can only focus what you bombard it with.  The second benefit is that when you read something you like, you can actually make yourself a better a copywriter.  Since I’ve figured out that writing is often a big part of the sales job, being the best copywriter possible is very important.  think about it, between emails, websites, sales letters, newsletters, blogging, 2/3’s of my work is writing in one way or another.  So reading a published author can only give you better ideas of how to improve your own writing.  I need to do a lot more reading, but hey, you’re reading this aren’t you?  so can’t be that terrible 🙂

Thanks for reading,

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