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Return and Advance vendor Return Management with RMA number

Basic Understanding

One of our US client Requirement  was to use Advance Return to vendor with RMA number. There are many ways in which return deliveries to vendors can be created. Want to share some of them.

The return to vendor process begins with a requirement to return an item to a vendor. The initial activity is to request a Returns Material Authorization (RMA) from the vendor. This is a manual step and the RMA number is entered into a text field in the return purchase order. The buyer then creates a return purchase order inthe system. The return purchase order is similar to a standard purchase order except the return flag which sets up the return delivery to enable shipment of the item(s) back to the vendor.

The return purchase order confirmation goes to the vendor and the return delivery is sent to the shipping department where the item(s) are picked and shipped back along with a delivery note. When the shipping department creates the delivery the item(s) are withdrawn from stock. A credit memo is generated which transfers the liability to the vendor.

Case 1: Advance return to vendor with RMA number and outbound delivery.

Configuration steps:

SPRO –> MM –> Purchasing –> PO –>  Return Order and Advance Return Management

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1. Activate Advance Returns management for Purchase Order Types.

     PO document types will be NB2. Activate Advance return for particular PO document type.

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2. Activate and Rename follow on activities

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You can maintain different number ranges for Return PO

You can also maintain the reason to return to vendor.

After all the configuration we will run the actual scenario.

Scenario:

You have to send material back to vendor with RMA number provided by vendor.

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Create the Return Purchase Order with document type NB2.

Enter the vendor

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But before creating PO make sure all the needful data is entered in the vendor master XK02

In Purchasing data, tick on ‘RMA Required’ field and also tick on ‘Return vendor’

Maintain the shipping condition.

Once you tick on return vendor, the system pop up a window and will ask you to enter customer number. If you press OK, the system will create the dummy customer and it gets reflected in vendor master. As you will create shipping document the customer should be available.

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Again back to PO, enter all the data i.e material number, quantity you want to send back to vendor.

Also, make sure return delivery indicator at PO item level is ticked.

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You have to enter vendor RMA number at PO header level under ‘Return ‘ tab.

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Save the PO, you will view the shipping data same as that in STO PO.

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For shipping tab to be reflected in PO, make sure all the settings are done for delivery type used, Customer will be captured from vendor master, also sales organisation, distribution channel, division should be configured. Shipping condition, shipping point along with delivery type should be configured, Loading group and transport group will be captured from material master sales view.

Through VL10B, shipping document will be created with respect to return PO.

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After executing and background run

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SD document will be created

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Check in tcode: VL02N outpound delivery

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Return delivery gets created.

Post the goods issue.

Then the process is same after return delivery, credit memo will be created.

Case 2: Normal vendor return with movement type 122 with automatic delivery.

If you want to do normal return to vendor via movement type 122.

Follow this process.

Vendor creation will be same as explained above.

After normal standard PO creation and GRN created in system, We have to return material to vendor via movement type 122.

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Standard purchase order created.

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GRN created with respect to PO.

View PO history.

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Now due to some reason out of 10 quantity we have to return 2 material quantity back to vendor.

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Tick on ‘Via delivery’ and enter ‘Reason for movement ‘

If all the setting from SD module i.e delivery type, shipping condition, shipping point, sales area configuration and return configuration as explained before are done then in MIGO by clicking on ‘Via Delivery’ the system will automatically create the outbound delivery in the background.

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You can view the reflection in Purchase order history.

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