Processing Quality Notifications in Procurement

Procurement is responsible for purchasing raw materials and components from suppliers. Although you may perform a goods receipt inspection, it is possible to miss defective items. Play the video to learn from Brian, the quality technician, what process steps are required in such a case. 4_3_SupplierComplaint.mp4

The following image summarizes the process described in the video once more:

As in the example of the video, defective components may be discovered by the Warehouse Clerk or Production Worker when staging them for production. Alternatively, the defective items may be found during the goods receipt inspection. In both scenarios, a Quality Notification of notification origin Q2 is created to document the defect items, analyze them, and, if necessary, arrange for their return to the supplier.

• Supplier-Related Defect (Notification Type F2): This notification type is used when a defect is discovered during goods receipt inspection and a defect record is created. The Quality Technician creates the notification based on an inspection lot that is associated with a goods receipt, so all relevant information is already included.

• Complaint against Supplier (Notification Type Q2): This notification type is used when a defect is discovered independently of the goods receipt quality inspection. The Quality Technician creates this notification from scratch, without any reference to a goods receipt inspection lot, so they must provide context information.

To make data recording easier, the Application Consultant configures the Q2 notification type to display one of the following initial screens when a Q2 notification is created:

You should use the first screen if you typically create Q2 notifications for defective materials and have the purchase order item number and/or the goods receipt material document number. The system will automatically transfer data from the reference document (such as material number, batch number, supplier, quantity, etc.) into the notification once you confirm it.

The second screen is used when creating a Q2 notification and you want to copy an existing notification. For example, you can define a copy model reference notification that includes the default process for issue analysis and resolution in the form of tasks and activities. When creating a new notification, the system will copy all tasks and activities from the copy model into the specific issue. Then, you can fill in the missing data such as the concrete quantity, defect items, processing dates, and so on. This allows for a more efficient and streamlined process in handling notifications.

If necessary, you can change the linked documents, such as purchasing document or material document, at a later stage if you notice a mistake or if you only know the purchase order when creating the order, but not the order item and/or the material document.

To prevent the use of defective items in subsequent processes, the Quality Technician moves them from unrestricted-use stock to blocked stock. The defective items remain in blocked stock until further clarification is provided. One advantage of using a quality notification is the ability to conveniently initiate the goods movement by selecting the appropriate action in the action box:

The transfer posting action in SAP S/4HANA involves the execution of two function modules. When selecting this action, a pop-up box appears, prompting the Quality Technician to enter additional information such as the quantity to be posted and the storage location. If this information is already available in the notification, the system automatically suggests it. Once saved, the system carries out the transfer posting and generates a material document. A task is created with the material document number included in the long text.

In the next step, the Quality Engineer and Quality Technician use the quality notification to manage issue analysis and resolution. Depending on the details of the process, they create tasks and assign them to the task processors. Ultimately, the Quality Engineer might decide to return the defective quantity back to the supplier for repair and/or exchange. Again, they can use an action in the action box to trigger the return delivery:

The Quality Engineer can choose to create a return delivery with or without referencing the original purchasing document. If they choose to reference the original document, the system will automatically decrease the delivered quantity and reopen the purchase order for processing by the Procurement department. Alternatively, if no reference is made to the original document, the system will generate a return purchase order to facilitate the exchange of defective goods.

Additionally, the Quality Engineer can expedite the delivery process by taking another action. For example, they can directly print the delivery papers or post the goods issue. This allows for a more efficient and streamlined workflow, eliminating unnecessary steps and reducing the time it takes to complete the return.

The SAP S/4HANA standard offers other actions that support complaints against the supplier, for example:

• Identifying the supplier of the material and assigning them to the quality notification

• Identifying the purchasing document for the material and assigning it to the quality notification

• Transfer posting of material from blocked stock to unrestricted-use stock

• Transfer posting of material from blocked stock to inspection stock

• Creating a return delivery

• Requesting an 8D report

• Transferring to the usage decision to the stock transfer inspection lot

• Proceeding to the app Change Delivery to print papers and post the goods issue.