Advanced Returns Management 2

10/29/2020 SAP Advanced Returns Management Tutorial - Free SAP SD Training
Home » SAP SD » SAP SD Training » SAP Advanced Returns Management
SAP Advanced Returns Management
Written by Feliyanus Gea and last updated on August 30, 2018.
Advertisement
Welcome to the tutorial about SAP Advanced Returns

Management. In today’s world, the company is expected to
have a reliable after sales process which includes complaints
processing, repair, and return processing. There is an old
phrase which is still relevant in the business world, “customer
is the king, and service wins the game.” Making new sales
every now and then is good, but to retain the current
customer is also crucial.
Because the customer expects high quality products, the return process is also expected as a
service process which will be handled transparently, efficient with an immediate refund
process.
https://erproof.com/sd/free-training/sap-advanced-returns-management/ 1/27
Advertisement
We have learned that customer returns could be processed in SAP by creating separate
documents (return order, return delivery, return stock, credit memo, etc.). However, this is not
sufficient because we can lose track in regards with the follow-up documents. Also, if we face
a complex situation which involves third-party supplier, the efficiency of the process will
become an issue.
SAP Advanced Returns Management integrates the whole process from creation of a return
order, to inspection management, followed by creation of a credit memo. SAP Advance
Returns Management has two types: customer and supplier return. This tutorial will only
address the customer return process.
This tutorial assumes you have familiarity with SAP terminologies especially with Sales and
Distribution module. You should have basic understanding how to create order to cash
process followed by complaint handling processing creation (credit memo / debit memo /
invoice correction request). This tutorial is part of our SAP SD course.
You also should make the prerequisite customizing in SAP Advanced Returns Management
via:
1. IMG – Sales and Distribution – Sales – Advanced Return Management

2. IMG – Logistics General – Advance return Management
SAP Advanced Returns Management Features
What are the features of SAP Advance Returns Management? What makes it advanced
compare to its brother, the “regular” returns processing? Let’s have a look for the general
process flow first.
SAP Advanced Returns Management General Flow
The Return Order is the main entry point. The data entry will be integrated once you save
the Return Order document. The Delivery Order will be also created automatically.
The warehouse inspection will be done based on the value setting from the return order.
The logistics follow-up documents will be created automatically (goods receipt, goods issue
document, etc.).
Customer refund will be processed faster through a credit memo (which you will define at
the return order creation).
We can monitor the whole customer return process via a single transaction code that has
statuses for each process plus the tree process of each item.
SAP Advanced Returns Management Step by Step
In this section, I am going to explain how to create the whole SAP advanced returns order
process with a simple scenario. A customer wants to return the goods he already bought
because they don’t have more space for the remaining item. He decided to return the material
by himself to our premise (one of the sales counter). The sales representative will be
immediately advised to create a refund for this process.
Advertisement
Run the transaction VA01 and select the Advance Returns document type, along with its sales
area.
Select Correct Order Type, Then Fill in Sales Area
Click on the “Create with Reference button”, and input the billing document number, click the
“Copy” button.
Select the Bill. Doc. Tab, fill in the Referenced Document, Click Copy Afterward
In the Overview Screen, you will be redirected to “Returns” tab, and let’s have a look at the
Return Control and item details. There are several fields that should be filled which will
determine next actions.
SAP Advance Return Document Overview
1. The return reason is a predefined selection list that you have set before. This field is
similar to Order Reason field we which we often encounter when working with debit/credit
memo request documents.
2. Follow-Up Activity contains predefined selection list that will determine the following
document after you save the advance return document. Each selection will carry different
document / scenario, so be aware of your choice. In my example, I selected the “002
Immediate Move to Free Available Stock.”
3. The Material Received indicator indicates that the item material has been received during
return processing.
4. Refund Type field will specify what type of refund the customer receive. The system
provides two types, credit memo (monetary compensation) or replacement material.
5. Inspection Code is used to specify the quality of the returned material which will be
determined during the inspection process.
6. Inspection Command Line is a free text, you can enter anything here.
As you can see above, these fields will be applied to the line item material. Run the
Incompletion Log for a good measure. Save the document afterwards.
Document is Complete
Save the document and you will have the SAP advance returns document.
New Document is Generated
Now, let’s run the transaction MSR_TRC_C (yes, it’s that long). It is used to monitor the return
process and which documents have been created for each process.
SAP Return Overview Screen
1. Input your name here.

2. Fill / select the Return Order Type (I’m using ZRE2).

3. The list of created documents will be displayed. Select / highlight the desired document.
4. Click on the “Display Items” button.
5. Line items for the document will be displayed.
6. These are the return steps which are determined by the configuration we made prior in the
advance return order document.
Let’s see the comparison between the “Return Steps” versus the advanced return order we
made before.
Return Steps on Return Overview Screen are Based on Return Order
1. The Warehouse Inspection is automatically created because I selected the “Inspection

Code” OK.
2. Logistical Follow Up document (Posting to Unrestricted Use) is done automatically based
on the Follow Up Activity, “Immediately move to…” in the return order.
3. Return Delivery is automatically created based on the return order.
4. Goods Receipt is generated automatically because I ticked of “Material Received”.
5. Credit Memo is generated automatically due to setting in refund control, “Immediately.”
SAP Advanced Returns Management with Complex Scenario
Consider the previous section as a warm up because in this section I am going to explain
another scenario which involves more steps and more manual documents created due to
different roles with different tasks. Here is an overview of a scenario with all the documents
related to this complex SAP advanced returns management process.
Document Type Person in Charge Comment
Adv. Return Order Manual step Sales Admin
Automatically Based on Return

Return Delivery –
generated Order
Created when
Posting Goods
Manual step Warehouse staff material arrives in
Receipt
warehouse
“Ship to Vendor”
setting in return
Warehouse Quality Assurance
Manual step order will trigger
Inspection Staff
Return Purchase
Order
Created after
Return Purchase Automatically
– warehouse
Order generated
inspection
Invoice Verification Manual Step Accounting
Based on setting in
Outbound Delivery to
return order (“After
vendor and Posting Manual Step Warehouse Staff
receipt of Credit
Goods Issue
Memo from Vendor”)
Credit Memo Manual step Accounting
Now, let’s see how this works in SAP ERP system. Create a Return Order based on the
reference billing document.
Create Return Order Overview Screen
1. Input the return reason. For this example, customer return five pieces because they are
damaged.
2. Since the item material was bought from an external vendor, the follow-up activity would
be to send it to the vendor.
3. We are going to provide payment as the refund for the customer.
4. We will give a credit memo to the customer after we receive a credit memo from the
vendor.
5. The Inspection Code is “Not OK”. It will be processed in our warehouse later on.
6. The following comment from inspection code.
7. The vendor that we will ship the material to.
Now run the transaction MSR_TRC_C to monitor the return process.
SAP Returns Process Overview Screen
1. Enter the return order document.

2. Select the header and display the item.
3. The tree of all the processes. As you can see, the process stops at the delivery order
return creation.
Now, run the transaction VL02N and enter Storage Location (return Storage Location
obviously), picking quantity and do Post Goods Receipt.
Returns Process Overview Screen
Let’s go back to the MSR_TRC_C transaction and look up the next process.
After Material is Received, QA Staff Need to Inspect the Goods
Run the transaction MSR_INSPWH, enter your plant and click the execute button.
Initial Screen for MSR_INSPWH. Enter Plant and Execute It.
Look below for each order. First, you should select the inspection code, enter your comment
there, enter the inspection date, and mention the person responsible for doing the inspection.
The “Logistical Follow Up” is determined based on the prior return order setting. Afterwards,
click the “Save and Confirm” button.
Entry the Necessary Fields as Pointed by the Numbers Above
Let’s go back to the transaction MSR_TRC_C and we can see the screen below. The system
automatically created a Returns Purchase Order.
The Following Returns Purchase Order is Triggered by Inspection Document
Let’s process the return purchase order in the transaction ME22N.
1. Select the correct combination for the purchasing area.

2. Enter the price for this material.
3. Input the RMA Supplier (same with vendor code).
4. Save the document.
Purchase Order for Vendor Return
Go back the transaction MSR_TRC_C. Next, we are going to perform goods issue to the
vendor.
Return Purchase Order Saved! Now, Do Goods Issue to Vendor
To create posting of goods issue to vendor which is based on the purchase order, run the
transaction VL10B and insert the shipping point and the purchase order number. Then,
execute it.
Select the Shipping Point and the Purchase Order Number
Now, select the line item with our document and click “Background” button.
Select the Line Item and Click on the Background Button
Green Light Means the Document is Successfully Processed
Return to the transaction MSR_TRC_C and you will see a new delivery order document is
created. Now, posting goods issue in the transaction VL02N.
Outbound Delivery Created
Entry Picking Quantity and Click Post Goods Issue Button
Now, in the MSR_TRC_C transaction, you can see the remaining step of the returns process
is a credit memo to vendor.
We are going to create the credit memo
After the material arrives to the vendor’s premises, we are going to post an incoming payment
with a credit memo document. This is a credit memo for the vendor and it is different from
customer credit memo that we discussed in previous tutorials. Run the transaction MIRO,
select the Credit Memo transaction and enter amount for the credit memo. Click Save button.
Enter Document Date and Amount
New Vendor Credit Memo has been Created
We are done our business with the vendor. Now, we return to our beloved customer because
we are going to give them credit memo to reduce their account receivable after we received
the credit memo from the vendor (remember the setting from the return order?).
Last but not Least, Credit Memo for Customer
Run the transaction VA01 and create a credit memo request by referencing the return order.
Input Sales Area, Enter Referenced Document, and Click Copy
Release the billing block, fill out the Order Reason, and save the document.
Release Billing Block and Go to “Sales” Tab
Enter Order Reason and Save the Document
Release the billing block, fill out the Order Reason, and save the document. Finally, run the
transaction VF01 and create a credit memo request document based on this return order.
Credit Memo for Customer
Go to the transaction MSR_TRC_C and check that all processing statuses are now completed
and all the lights are green.
The Complex Process of SAP Advanced Returns Management is Now Finished
Common Questions for SAP Advanced Returns Management
Q-1: How to return material from external vendor?
Advertisement
A-1: In the Follow-Up Activity field, you may use the “0005 – Ship to Vendor” during Return
Order creation. The return Purchase Order for that vendor will be created.
Q-2: What about plant? How can I make the scenario of return to plant within company?
A-2: Yes, this is also possible. Select the designated follow-up activity in the return order. Just
be aware that not all the subsequent document will be created. Depending on the
configuration and business process, you need to monitor the process.
Q-3: I want my Quality Assurance (QA) team to do the inspection manually and I want it to
have a different code to determine any justification for the returned goods. How to achieve it?
A-3: First, you have to define the inspection code and assign it to the profile. Then, to do the
inspection manually, just leave the “material received” indicator blank. You will need to run
MSR_INSPWH transaction separately.
Advertisement
Did you like this tutorial? Have any questions or comments? We would love to hear your
feedback in the comments section below. It’d be a big help for us, and hopefully it’s something
we can address for you in improvement of our free SAP SD tutorials.
Navigation Links
Go to next lesson: Essential SAP SD Reports
Go to previous lesson: SAP Invoice Correction Request
Go to overview of the course: SAP SD Training
12 thoughts on “SAP Advanced Returns Management”
Jasse Sen
September 14, 2018 at 12:43 pm
Fantastic. You made so many consultants day. Amaizing document. I will role this our for my
client
Raquel de Miguel
November 20, 2018 at 6:09 pm
Hi,
Exist some report standar to can see the information to MSR_TRC_C in list form?
Thanks!!
Chandrashekhar Thombare
January 14, 2019 at 10:46 am
This is for returns management from Customer to Vendor. But what about the return
management system for managing complete cycle of returns from pick up to inward to
segregation/ grading to bulk sale or disposal. How can we get the real time serial number
level information or visibility across all DCs to effectively manage and control these returns.
Returns generated from end customer, transit damages, under DOA policy or outside DOA
policy. How to control these and what provision do we have in this system.
My challenges as a Large Format Retailer are as follows
1. No visibility of information (serial number level) on status pending at DCs.
2. No system integration with Brands for returns management, manage information.
Suresh
May 15, 2019 at 10:58 pm
Many thanks, it is really nice document. I cracked many of our existing issues in ARM looking
through your doc.
6
June 3, 2019 at 9:51 am
Frank
June 26, 2019 at 9:05 am
Hi. Great job. Tks a lot. Really very helpful. May can you let me know in which SAP teaching
lesson this topic is based? Tks a lot one more time…..Frank
Sanjay Dey
June 28, 2019 at 5:13 pm
Nice details step by step document . Thank you
Ajay
July 15, 2019 at 1:41 pm
Its really nice document. it will really help us in understanding the advance return process.
Thanks a lot for your efforts making this kind of documents
sadanand
July 19, 2019 at 8:09 am
Thanks for Sharing…its really helpful document..
Suresh
HI,
It is definitely a good document for consultants and end users.
I am working with the S4 Hana latest version were we have the Refund Code on the Returns
Tab This is a great field where, we can link the deduction code / amount to the inspection
code. The point no where i find any document or material which says how to link this code
with Pricing procedure.
Sundar Munirathinam
Hi
I am doing cross-company store return. I don’t want the inspection step. I want to create credit
memo directly after goods receipt at the DC. But VF01 fails to create credit memo with an
error, “inspection not closed, billing not closed”. How do I deactivate the inspection step?
Thanks,
Sundar
Jayant
October 17, 2019 at 11:58 am
Issue:
Cost not updated to PGR accounting document in return delivery from billing document.
Steps:
SO-Delivery-PGI-Invoice-Return Order-Return Delivery-PGR
I have MTO material in my SO and EK02 got updated from SO costing. Costing got updated
in PGI accounting document and same appear in invoice VPRS. Now customer return
material, with advance return management we created return order but here VPRS value not
copied from invoice but have EK02 value. Requirement is cost should update to PGR
accounting document.
Kindly please suggest.
LATEST POSTS RECENT COMMENTS
SAP Easy Access Prasoon Singh:

This SAP easy access tutorial will give you an i have got an error of F5092 " document type AB
ove... must have internal number assignment ...
SAP Super User gailathe:

When a company begins the process of hello i need help i need the sales which dumped
implementing ... from another system to sap at 12 mid ...
SAP Subject Matter Expert Nico van Maarseveen:

Implementing SAP in an organization not only Thank you very much Tania, for this explaintation.
align... Really helpfull!...
What is SAP Reconciliation Account? Emiliano:

SAP financial accounting has several sub Automatic reversal is not possible. However
ledgers, ... using FBS1 and F.81 can be used for that ...
SAP Functional Specification Emiliano:

The SAP functional specification, affectionately This example is related to the expense for
r... november. You will have to do the same acc...
USEFUL LINKS ABOUT US
Contributors This is an unofficial blog about SAP certification, SAP

training, and other things related to one of the world's
Terms and Conditions
leading ERP system.
Privacy Policy This blog is independent and NOT affiliated with SAP SE
(the company behind SAP ERP system). Your usage of this
Contact Us
website signifies your agreement with our terms and
conditions. We would be happy to hear your feedback or
questions.
ERProof / Blog About All Things Related to SAP / © 2011-2020 ERProof All Rights Reserved

Advanced Returns Management 2

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advanced Returns Management 2

Uploaded by

Copyright:

Available Formats

10/29/2020 SAP Advanced Returns Management Tutorial - Free SAP SD Training

Home » SAP SD » SAP SD Training » SAP Advanced Returns Management

SAP Advanced Returns Management

Written by Feliyanus Gea and last updated on August 30, 2018.

Welcome to the tutorial about SAP Advanced Returns

1. IMG – Sales and Distribution – Sales – Advanced Return Management

SAP Advanced Returns Management Features

SAP Advanced Returns Management General Flow

SAP Advanced Returns Management Step by Step

Select Correct Order Type, Then Fill in Sales Area

SAP Advance Return Document Overview

New Document is Generated

SAP Return Overview Screen

1. Input your name here.

2. Fill / select the Return Order Type (I’m using ZRE2).

Return Steps on Return Overview Screen are Based on Return Order

1. The Warehouse Inspection is automatically created because I selected the “Inspection

SAP Advanced Returns Management with Complex Scenario

Document Type Person in Charge Comment

Adv. Return Order Manual step Sales Admin

Automatically Based on Return

Invoice Verification Manual Step Accounting

Credit Memo Manual step Accounting

Create Return Order Overview Screen

Now run the transaction MSR_TRC_C to monitor the return process.

SAP Returns Process Overview Screen

1. Enter the return order document.

Returns Process Overview Screen

After Material is Received, QA Staff Need to Inspect the Goods

Initial Screen for MSR_INSPWH. Enter Plant and Execute It.

Entry the Necessary Fields as Pointed by the Numbers Above

The Following Returns Purchase Order is Triggered by Inspection Document

Let’s process the return purchase order in the transaction ME22N.

1. Select the correct combination for the purchasing area.

Purchase Order for Vendor Return

Return Purchase Order Saved! Now, Do Goods Issue to Vendor

Select the Shipping Point and the Purchase Order Number

Select the Line Item and Click on the Background Button

Green Light Means the Document is Successfully Processed

Outbound Delivery Created

Entry Picking Quantity and Click Post Goods Issue Button

We are going to create the credit memo

Enter Document Date and Amount

New Vendor Credit Memo has been Created

Last but not Least, Credit Memo for Customer

Input Sales Area, Enter Referenced Document, and Click Copy

Release Billing Block and Go to “Sales” Tab

Enter Order Reason and Save the Document

Credit Memo for Customer

The Complex Process of SAP Advanced Returns Management is Now Finished

Common Questions for SAP Advanced Returns Management

Q-1: How to return material from external vendor?

Go to next lesson: Essential SAP SD Reports

Go to previous lesson: SAP Invoice Correction Request

Go to overview of the course: SAP SD Training

12 thoughts on “SAP Advanced Returns Management”

Nice details step by step document . Thank you

Thanks a lot for your efforts making this kind of documents

Thanks for Sharing…its really helpful document..

Kindly please suggest.

LATEST POSTS RECENT COMMENTS

SAP Easy Access Prasoon Singh:

SAP Super User gailathe:

SAP Subject Matter Expert Nico van Maarseveen: