Loyalty Management - Redemption Process

Dear Experts,
I'm a bit confused with the Loyalty Management redemption process with Partnership. Would appreciate if you could clear my thoughts.
We have this process where currently, when a customer buys a product from a retail partner, the customer earns point and the points are deducted from the partner point account. However, when the customer redeems points (eg: using points to purchase a product from the partner), does the points actually being return back to the retail partner? Because at the moment i do not see how this works. My assumptions are one of the following options below:
1) When customer redeems point, a membership activity is created. At the same time, a partner activity is also created. Points are deducted from the member's account, but at the same time, points are added into the partner's membership account. This would mean we have to create a Membership for a Partner. Does this makes sense?
2) At the end of the month, a report will be pulled out to see the number and total amount of redemptions by customer for that particular retailer/partner. We will then create a credit memo request seperately to settle the amount with the partner
3) Or for every customer redemption, eg: customer redeems a packet of drink for 100 points, then credit that 100 points back into the Partner Point Transaction. But how is this being done? Currently the system only auto deduct the partner point transaction for customer's point earning

Hi Pradeep,
Please refer to the help file for more information.
http://help.sap.com/saphelp_crm70/helpdata/en/2e/26c437e5dc412db8adc99135fe3484/content.htm
http://help.sap.com/saphelp_crm70/helpdata/en/d9/407fbbba274c8c9df0248f56cc73e9/content.htm
http://help.sap.com/saphelp_crm70/helpdata/en/67/42ed4bf8f5460591bd302469f3b12d/content.htm
Hope this helps.
Regards,
Rashmi

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    Does anybody has a Best Pracise Configuration Guide for Loyalty Management, I can use as an additional guide beneath the SAP Marketing book to solve these issues and to check all system settings and the customizing?

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    I know this is a late post but will help other users who search.
    Note - 1331970.
    Symptom
    Loyalty functionality in sales order
    Solution
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    Hedy

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    Character length......... " " Bits                                            
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    Database type............ " "                                                 
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    Patch text............... " "                                                                               
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    Database................. " "                                                 
    SAP database version..... " "                                                 
    Operating system......... " "                                                 
    User, transaction...
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    User................ " "                                                      
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    mudessir.

    Hi
       follow correction method suggested in this dump,
    " The SAP System work directory (e.g. /usr/sap/c11/D00/work ) often
    contains a file called 'core'.  Save this file under another name."
    have you done this?
    with regards,
    raj.
    <i>pls, award points</i>

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