VA01 (RE2)

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.

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.

Run Transaction MSR_TRC_C: It is used to monitor the return process and

which documents have been created for each process.

1. The Warehouse Inspection is automatically created if we 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.”

Document Type Comment

Adv. Return Order Manual step

Return Delivery Automatically Based on Return Order

generated
 Created when material arrives in
Posting Goods Receipt Manual step
warehouse

“Ship to Vendor” setting in return

Warehouse Inspection Manual step order will trigger Return Purchase
Order

Automatically Created after warehouse

Return Purchase Order
generated inspection

Invoice Verification Manual Step

Outbound Delivery to Based on setting in return order

vendor and Posting Goods Manual Step (“After receipt of Credit Memo from
Issue Vendor”)

Credit Memo Manual step

Scenario 2: Material sent to Vendor

1. Input the return reason.

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.

Run: MSR_TRC_C

Return purchase order will be created immediately on saving the Advance return order

ME22N

VL10B

MIRO

Create Credit Memo Request with reference to return order

Create Credit Memo

Business scenarios supported by SAP ARM

 Customer returns
 Supplier returns
 Branch returns
 Factory returns
 Integrated end-to-end process for returns, starting at the end
customer and leading through a multi-stage supply chain to the
manufacturing plant or supplier
 Mapping of business models of life cycle management, such as parts
cycles of spare or wear parts, for example in the area of tool
management

Key features of SAP ARM

 Returns order (SAP ARM)
 Material inspection
 Logistical follow-up planning
 Automatic document creation
 End-to-End Process Monitoring

Material inspection

 Registration of inspection results for the material directly in the returns order: for
returns order-based deliveries or for supplies-based on returns stock transport orders

 Registration of inspection results for deliveries with reference to returns purchase

orders
Advantages:

 Easier planning of logistical follow-up activities

 Higher transparency at the determination of returns refunds

 Better traceability of decisions in the returns process

 Analysis and evaluation of returns processes for reducing the returns volume

Defintion of logistical follow-up activities

 Examples: assume immediately in free available stock, delivery to suppliers,

acquisition in commission

 Determination of final place of destination of a returned material

 Registration of necessary details of the material in the returns order for follow-up
activities

 Usage of control transaction for data collection

Advantages:

 Reduced effort for planning and execution of logistical follow-up activities

 Analysis and evaluation of returns processes for future reduction of returns volume

Automatic creation of follow-up documents

Examples:

Returns stock transport order, returns purchase order, inbound and outbound delivery as
well as goods movements

The consequence:

Faster processing and higher productivity- User have to interfere rarer in the processes.

Returns refund determination

More precise and transparent determination of returns refund through:

 Information of the returns refund to customer: if and in which form

 Determination of returns refund amount over returns refund code

 Determination of returns refunds

Returns overview

 Tracking of returns processes

 Overview over all process steps, created follow-up documents and status information
(settlement and returns refund)

 Better customer service through easier information possibilities

Customer returns and supplier returns

Administration of customer returns and mapping of all returns scenarios in the SAP system
like e.g. direct returns in the shop, returns which include a delivery in the storage with
subsequent reverse handling in logistics and direct returns from customer to the suppliers.
The returns refund takes place with credit memos or replacement material.

Supplier returns are connected with the return of products from one company location to
the following, possible recipients: supplier returns for external suppliers and branch returns
for other companies in the further process of the logistics chain.

All connected steps with the returns management are integrated:

 Creation of returns orders

 Entering of inspection results

 Decision over logistical follow-up avtivities

 Returns refund for customer returns through credit memos

 Free subsequent delivery of replacement materials

 Process monitoring

 Connection of single steps with different user roles and authorizations

 Automatically creation and tracking of all receipts for processing in logistics and
finance

Increase of process efficiency sinks total cost of ownership

 Optimization of the whole returns management

 Continuous support for the whole returns process

 Standardized and clearly return processes

  Support of customer returns (from known customers to a company location or an
external supplier)

 Support of supplier returns (returns from one company location to an external

supplier in the further supply chain

Faster and more effective handling of returns

 Automatically creation of follow-up documents for all functions

 Better usability accelerates the creation of return orders

 Higher customer service and increased customer satisfaction

Overview over the returns process

 All at a glance through monitoring functionality (returns overview)

 Administrate business processes more efficiently and more transparent to returns

 Increase of efficiency and transparency

 Improve customer service

Further advantages

 Individual adaption and control of the return process

 Mapping of different scenarios

 Standard archiving objects for process tracking data supports an easy traceability of
the processes

 Supply through updates, patches and extension of functionality through SAP is

permanently guaranteed

 Additions for the returns process

Because the customer return is a sales business process the returns order will be usually
created with regard to the preceding customer order.

Customer-individual adaption and controlling of the returns process

Within the Advanced Returns Management in SAP ERP there is a series of possibilities for
the customer-individual adaption and controlling of the returns process.
The customizing is clear and has a lot of possibilities for the customer-specific design of the
returns process, whether through catalogue entries for material inspection, definition of
returns reasons, determination of goods movements for follow-up activities, determination of
proposal values and so on.

Possible Scenarios

The fundamental returns process with usage of SAP ARM can be individually controlled and
influenced in his course. The process can take many characteristics and properties. The
following scenarios are thinkable and practicable:

 Goods receipt in storage through return delivery or personal delivery of the article

 Returns refund control, e.g. credit memo or shipment of free replacement material

 Returns management of drop shipments (direct delivery supplier – customer)

 Logistical follow-up activities for definition of goods movements (further proceeding),

for example:

o Goods should merge in freely available stock

o Goods should merge in reject

o Goods should be delivered back to supplier

o In the same step a credit memo request can be released

o Follow-up activities can be already indicated in return order