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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 When the shipping department creates the delivery the item(s) are withdrawn from stock.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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27 Comments

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    1. Priti Singare Post author

      ya sure why not…actually this document was prepared in my previous company… so dont have this feature in current company… πŸ™‚

      (0) 
    1. Priti Singare Post author

      Hi Sumanth,

      Thnx. RMA number is not created. This number will be provided to you by your vendor.

      Yes the field appears in PO from vendor master.

      Hope this is clear to it.

      (0) 
  1. Leo Thilak M.S

    Hi priti

    Nice document , our client following normal 122 movement as u shown in scenario 2 , like to implement RMA logic , but i dont know what are advantages of scenario 1 , is it for tracking return po with RMA number

    Regards

    Leo

    (0) 
    1. Priti Singare Post author

      Hi,

      Its up to your business requirement whether they have to implement RMA functionality or not. Let me tell you this RMA functionality is mainly used in CRM part where company provides RMA number.

      RMA is return material Authorization number.

      Whenever a return request is created, this number is provided to the customer to get the goods inside. 

      (0) 
      1. S. Mul

        What if the vendor does not want the RMA to automatically enter their system?

        I have a customer who issues RMA’s without consent of return.  Is it logical that these parts be returned without authorization?

        (0) 
  2. Axel Baner

    Hi Priti,

    Thanks for your explanation. In Case 1 are you passing the RMA number to your delivery in any way? I can see that there is a field LIPS-SPE_AUTH_NUMBER but I’m not managing to populate it (or even see it), so I guess its not designed for use in the Vendor Returns process. Do you have any ideas?

    Regards,

    Axel

    (0) 
  3. Ashish Gautam

    Hi Priti,

    Thanks for explanation.

    We also working on ARM component for return vendor. I have a issue. you can fill RMA number in header and save. but it is not saved actually. when you open it again its gone. I see in your screen shots as well its nil.

    Do you have any idea to resolve this problem.

    Best Regards,

    Ashish Gautam

    (0) 

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