Explaining the Condition Code/Return Delivery

Objectives

After completing this lesson, you will be able to:
  • Explain the concept of Condition Code.
  • Trigger an automatic return delivery.

Condition Code

In this lesson, you will learn about:

Managing several levels of material usability using a condition code.

Scenario

Your unit manages an inventory of materials. Some are new and usable, others are used, harmed, blocked or requiring a validation by a technician.

Condition Code

The image shows a clothing warehouse icon and five icons representing different conditions of clothing items: new, used and intact, requiring laundry, requiring mending, and to be scrapped. Below the icons, there is an image of a person's lower body wearing military-style boots and camouflage pants. The overall content appears to provide guidance on the handling and processing of different types of clothing items.

Militaries are required to manage non-consumable materials pertaining to different levels of usability. While in a large distribution center, it is possible to map the usability levels by dedicated storage locations, such a solution is not feasible for tactical-level logistics. Therefore, it is needed to be able to differentiate a few levels of usability within a single storage location.

Facts about the Condition Code:

Mapping in the SAP system
  • The condition code is mapped using the SAP object 'batch.'
  • Material master data enhanced by field for type of condition management.
Features
  • Definition of the condition code as well as an initial condition per condition code in customizing.
  • Batches (and therefore stocks managed with condition codes) are created when goods are received, but this can also be done at later stages.
  • Transfer postings between conditions can be done (for example, from operational to non-operational).
Batch number assignment for condition management versus ‘real‘ vendor batches
  • For material managed with condition codes: 1st digit = condition, 2nd to 10th digit = blank.
  • For 'real' vendor batches: 1st digit = condition, 2nd to 10th digit = internal number.

Master Data and Configuration

The image shows a table that defines the Condition management type per material, including Batch Management and Batch management (Plant). The table also displays a Condition Management section with a dropdown menu that allows selecting different condition management options, such as No Condition Management, Condition Management Only, and Condition Management with Batch.

In Material Master Data, Info on Condition Management can be found on the Plant Data / Stor. 1. Batch Management needs to be enabled, and one of the options of Condition Management is to be selected.

The image shows a table that displays condition codes and their corresponding descriptions. The table includes condition codes such as A, C, D, F, H, J, Y, and Z, with their respective descriptions indicating whether the condition is usable, not usable, a defect, a special incident, or initial.

In Configuration of DFPS/D&SMaterials ManagementCondition Code , the settings are performed.

The image shows a goods receipt form with sections for head data, condition codes for selection, and goods receipt posting for a batch. The key information includes the material short text, quantity, plant, and storage location, as well as the condition code and its description.

When you perform a condition-code-relevant Material Movement (such as a Goods Receipt), the system will require the condition code to be selected by a pop-up as shown. For materials maintained as Condition Management=1 (Condition Code only), the selection of a condition code is the relevant batch.

The image shows the impact of condition codes on other screens and transactions. It demonstrates how condition codes are used when creating a requisition and how they are displayed in the material situation screen, including the warehouse stock details.

Through the Batch mechanism, the Condition Code impacts SAP business transactions such as requesting material, overview of material situation and others. The condition-code specific batch draws its restricted / unrestricted inventory status from the configuration of the condition code - as can be seen in the inventory overview. Subsequently, the 3 pistols with condition code F are considered restricted-use inventory.

The image shows a comparison screen in an SAP system that displays the details of a military equipment item, including its serial numbers, equipment details, and condition codes. The condition codes are visible in the Serial Number / Equipment Details section of the screen.

The overview screen of the authorized-Actual comparison includes no reference to Condition Code. However, condition codes can be seen in the Equipment Details on the detailed comparison screen.

Return Delivery

The image shows information about reverse logistics and return delivery processes in a supply chain management system. It explains that return delivery can be manual or automated, with manual return delivery using Fioritized SAPGUI transactions in S/4 HANA. The automated return delivery is a background process that facilitates a 1-1 exchange between the supply unit and the requesting one, based on material master and customizing settings for the return process. The image also includes a diagram illustrating the forward logistics and replenishment as well as the reverse logistics and returns.

For Manual Return Delivery, there is currently no native SAP Fiori app is available. Transactions /ISDFPS/STOCK_RETURN and /ISDFPS/MM_RL01 are to be used. Further details about Manual Return Delivery are given in the Provisions unit.

Reverse Logistics: Automated Return Delivery, Further Facts:

  • A typical use case for using automated return delivery is to request serviceable material and on goods issue automatically trigger a return of the unserviceable material.
  • Depending on system configuration, the return request will be produced automatically in accordance to a certain goods movement type.
  • Hence, it is possible to create the return request automatically on either of the following:
    • Goods receipt of the serviceable material in the unit or at,
    • Goods issue of the serviceable material in the warehouse.
The image shows a process flow for automated return delivery in a reverse logistics scenario. It demonstrates the typical process for replacing an unserviceable item with a serviceable one. The key steps include changing the condition code of the unserviceable part, creating a requisition for a serviceable material, creating a purchase order, generating an outbound delivery, issuing the goods, receiving the serviceable item, and automatically creating a return ST-Preq for the unserviceable item.

The figure, Return Delivery: Example, illustrates a typical process: Ask for a new item from a depot and in turn return the faulty item of the unit.

A faulty item will be put into the condition code, F (unserviceable), by movement posting.

Return Delivery: Mapping in the SAP System:

  • Material master-Basic Data field: Return Code.
  • Material master-Basic Data field: Return to Log. Level.
  • Field in the force element: Logistics Level.
  • Note: i. The focal point is the option of carrying out a return delivery by automatically generating purchase requisitions when goods issues are posted in the course of the delivery between the logistical levels. ii. Definition of the return code in customizing: In customizing, you can determine for each code whether an automatic return delivery purchase requisition is to be created. iii. Definition of the logistical levels and of the delivery relationships between the logistical levels relevant for the automatic generation of return delivery purchase requisitions. iv. Definition of the movement types and order types relevant for the automatic creation of return delivery purchase requisitions.
The image shows details related to automated return delivery in a logistics system. It includes a section on return code customization, displaying the return codes, their descriptions, and associated attributes. Another section shows how the return code is configured in the material master, allowing the selection of the return code and the corresponding logistics level. The final section allows the user to select the logistics level of the force element, such as consuming unit, supply unit, or depot.

This figure, Return Delivery: Automated, shows the system prerequisites for triggering a return delivery. Additional prerequisites exist in customizing (SPRODefense Forces and Public SecurityMaterials ManagementReturn Delivery).