In Refurbishment processes, cases of Capitalization options are not seen by me. Orders are settled to Cost Centers. In our model to prevent inventory increase, we opted for even zero values for the split valuated items (C3-Defective and C2-Refurbished). Ours also is non-serialized process.
Then why Refurbishment?
Good Question.Perhaps in many implementations, people without fully brainstorming the reasons why should they opt for Refurbishment process in a compromised environment, adopt this process because it is there in Standard SAP. I also fully agree to the idea of addressing this repair process in a normal Order route, in case there are no clear benefits or process compulsions are there.
In my situation, if I try to answer about the benefits,
- The first advantage I find is, it is a Material centric Order which tracks all movements during the process flow starting from C3 to C2 through various Storage Locations and through Quality inspection.
Just a view
Jogeswara Rao K