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Author's profile photo Mohamed Hasan Rifaie M

Return STO in SAP Logistics

Overview

Generally, Stock movement happens between storage location to storage location, plant to plant or company code to company code. Inclusion of delivery cost, tracking of transit stock can be achieved through STO. Stock shipped out of receiving plant to customer /retailer may receive back to the receiving plant as a return. Again, this return product has to be sent back to supply plant for any rectification, because customer shipping plant can’t rectify the product. This document shall address how the return process happens in STO.

Business Need

  • Product return from Customer
  • Product damage during transit

Process flow

The process starts with the creation of Normal STO till the receipt of return product by issuing plant.

Normal STO:

Create STO

Create shipment delivery

– Post Goods Receipt

– Create Billing (if applicable)

– Post Invoice (if applicable)

Return STO:

– Create Return STO

– Create shipment delivery

– Post Goods Receipt in MM Route

– Post Goods Receipt in SD Route

– Create Billing (if applicable)

– Post Credit Invoice (if applicable)

Key organization structure

Company code – 3000 (Intra company code)

Supply plant & Storage loc – 3400 & 0001

Receiving plant & storage loc – 3500 & 0002

warehouse number – (if applicable)

Normal STO Process

ME21N: STO of UB document type is created with the qty 200.

/wp-content/uploads/2013/11/1_329395.png

VL10B: Outbound delivery is created

/wp-content/uploads/2013/11/2_329426.png

VL02N: Post Goods issue – Prerequisite create Transfer order (Optional)

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Transfer order is created.

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Post goods issue in VL02N is done.

/wp-content/uploads/2013/11/5_329429.png

PO history shows complete inter company STO process.

/wp-content/uploads/2013/11/6_329430.png

Stock overview shows, 200 qty. is transferred to plant 3500 (storage location 0002) through STO with delivery.

/wp-content/uploads/2013/11/7_329431.png

Out of 200 Qty, 100 Qty is issued to Customer (through MM Route)

/wp-content/uploads/2013/11/8_329432.png

Stock qty reduced in plant 3500 (shipping plant to customer)

/wp-content/uploads/2013/11/9_329433.png

Customer reported defect in shipped qty of 100. The qty of 200 received back to the plant 3500

/wp-content/uploads/2013/11/10_329434.png

Stock is received back to plant 3500. Now this qty 100 needs to be sent back to supplying plant 3400 for rectification.

/wp-content/uploads/2013/11/11_329435.png

Return STO Process

ME21N: Return STO is created with the same parameters like normal STO. Return indicator needs to be selected.

/wp-content/uploads/2013/11/12_329436.png

MD04: Stock list in Receiving plant shows negative qty due to return

/wp-content/uploads/2013/11/24_329520.png

VL10B: Delivery for return STO is created.

/wp-content/uploads/2013/11/13_329437.png

/wp-content/uploads/2013/11/14_329441.png

MIGO – GR: Goods receipt is performed with reference to the outbound delivery. here, system automatically default 161 movement type based on return indicator in return STO.

/wp-content/uploads/2013/11/15_329442.png

MB5T: After goods receipt against outbound delivery, return stock is placed in stock in transit.

/wp-content/uploads/2013/11/16_329443.png

VL02N: Post Goods receipt is done (“Post Goods issue” in case of normal STO)

/wp-content/uploads/2013/11/17_329444.png

ME23N: The complete return history is shown below. movement type related to intracompany STO are 161 and 671 (in case of inter company STO movement types are 161 and 673)

/wp-content/uploads/2013/11/18_329445.png

MMBE: Stock overview shows defect product is being returned to supply plant (3400)

/wp-content/uploads/2013/11/19_329446.png

For intra company code STO return, the process ends with posting goods receipt in VL02N. In case of inter company code STO, the process ends with internal credit memo because of billing.

Configuration Overview

Switch off “Availability check” for item categories NLRN (Intra company) & NCRN (Inter company)

Path: Logistics Execution Shipping Deliveries Define Item Categories for Deliveries

/wp-content/uploads/2013/11/20_329447.png

/wp-content/uploads/2013/11/21_329448.png

Assign delivery type

For Inter company:

Path: Materials Management→ Purchasing → Purchase Order → Returns Order→ Returns to Vendor

/wp-content/uploads/2013/11/22_329449.png

For Intra company:

Path: Materials Management→Purchasing Purchase Order Returns OrderStore Return / Return Plant to Plant

/wp-content/uploads/2013/11/23_329450.png

Conclusion

With the above process and customization steps, SAP logistics consultants would understand the return STO process and hopefully this would serve a better content for them.

Author Bio:

Rifaie.jpg

Mohamed Hasan Rifaie,  a SAP Certified Procurement consultant, is now an employee of Larsen & Toubro Infotech Ltd. He has overall 12 years of experience, out of which more than 6+ years in SAP Consulting (P2P, SRM & WM). He has business experience in various industries like Manufacturing, Electro mechanical Construction and process industries as a Procurement Executive.

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      19 Comments
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      Author's profile photo Shiva Vasireddy
      Shiva Vasireddy

      Good Documentation

      you can also Explore Advanced Returns Management

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Hi Mr.Hasan;

      Nice to meet you , perfect document with details.

      Regards.

      M.Ozgur Unal

      Author's profile photo Rifaie Yusouf
      Rifaie Yusouf
      Blog Post Author

      Thanks Siva & Mehmet

      Author's profile photo CAO ZHENG WEI
      CAO ZHENG WEI

      Hi Shiva,

      We apply the ARM.

       

      Author's profile photo sumanth soma
      sumanth soma

      The way you presented the document was good đŸ™‚

      expecting a few more from u

      Author's profile photo Former Member
      Former Member

      Good one

      Author's profile photo Thejas Krishnamoorthi
      Thejas Krishnamoorthi

      Nice details!!

      Author's profile photo Ravi Jadhav
      Ravi Jadhav

      Lot more informative Great Work & appreciate the devotion of time & dedication đŸ™‚

      Author's profile photo Rifaie Yusouf
      Rifaie Yusouf
      Blog Post Author

      Thanks

      Author's profile photo PRASOON AK
      PRASOON AK

      Nice document and very informative. Thanks for sharing.

      Regards,

      AKPT

      Author's profile photo Rifaie Yusouf
      Rifaie Yusouf
      Blog Post Author

      Thanks

      Author's profile photo Cecil D'Souza
      Cecil D'Souza

      Brilliant with a good process flow to lead one in. Just the way a professional would layout things. However, I have a clarification to make. I don't see Post goods issue in the process flow and I wonder why. It just mentions Post goods receipt instead. Also, can you provide the Tcode at each step beside the process description?.

      Thank you for sharing your knowledge with us just like the other professionals whom I admire daily for helping.

      Author's profile photo Rifaie Yusouf
      Rifaie Yusouf
      Blog Post Author

      Thanks

      Author's profile photo Ravi Jadhav
      Ravi Jadhav

      for reverse STO we have to always perform PGR instead of PGI, try it you will surely get that reason.

      Thanks!

      Author's profile photo Former Member
      Former Member

      Thanks Mohammed Hasan,

      Nyc n perfect document.

      Author's profile photo Raghavendra Vidapanakallu
      Raghavendra Vidapanakallu

      Hi

      This doc shows only STO between Plants in the same Company code.

      Do you have cross company Return process for STO>

      Author's profile photo Rifaie Yusouf
      Rifaie Yusouf
      Blog Post Author

      Yes Raghavendra...You can still carry out intercompany return process.

      "For intra company code STO return, the process ends with posting goods receipt in VL02N. In case of inter company code STO, the process ends with internal credit memo because of billing"

      Author's profile photo Former Member
      Former Member

      Hello

      Many thanks for you documentation Mr Mohamed Hasan Rifaie

      I did everything that you indicated, but when I do the PGI of the delivery outbound return I have this message:

      Business transaction not supported

      Message no. /CWM/MM018

      The NR Replen. returns is 671/677 (stndar)

      Could you help me please...

      Author's profile photo Srinivas Bhushan Kandula
      Srinivas Bhushan Kandula

      Hi Mohamed Hasan Rifaie,

      Thanks for the document. When PGR is posted, can it be received into Quality inspection or Blocked stock (stock category Q or S)? Please advice.

       

      Regards,

      Bhushan