Skip to Content
Author's profile photo Typewriter TW

Returns – comprehensive analysis

The chess grand masters analyze hundreds and hundreds of chess games!

Constant studying of threads will give SD consultants the much needed “richness and density”…making them better consultants!

Below is a list of threads related to Returns. Study these regularly, make notes, practice in IDES and with time, you will become a MASTER!

1. important:

  • Implementing RE process gives the most learning and experience! a new order type or a new item category. When you get an opportunity to create a new RE order type or item category grab it with both hands!
  • Understand the processes before and after returns. After return order creation, there could be re delivery, re credit memo or SDF. For what business scenario should we design SDF?
  • Flow of goods can be forward and backward (i.e. sale and return), document category is one of the important settings which determines how a process will behave, how data will be stored, how SAP will keep track of data. OTC and RE cannot be in the same sales order!
  • For promotional sale, customer can not return the goods, below link – Design of promotional sale process. If copy control does not exist between sale and re process, then RE order cannot be created with reference. Understand copy control – at header and item levels.
  • “Mixing and matching” document types of different processes. Example below ZCR (credit memo request) > ZRE (return billing type). This is not the way it should be configured

OTC and RE cannot be in the same sales order!

Functionality – Document category
Two delivery types in one sales order

Post go live, a temporary issue

Functionality – Reference mandatory

Understanding the issue – is it related to transaction data OR related to configuration?

SALES RETURN for the material sold before SAP implementation

Promotional sale, customer can not return the goods

Block sales order items for return orders

Business process related ticket

How to handle “after” goods are returned to the company? Give credit to customer, supply the goods free of charge

Functionality – SDF, key configurations in SDF – no billing, delivery block, any pricing? , copy control related to creation of SDF order

Sale return of Component of Fin Prod

ZCR > ZRE , not recommended

For credit memo process there is a dedicated billing type G2

Output to trigger header ship in return order

2. important:

  • Understand for what business requirements you need a new/different RE order type and for what requirements you need a different item category.

change the item category in RE order, instead of the default item category – If re order is created with reference, then the particular re item category can populate automatically with copy control (item level). If re order created without reference, then manually the “correct” item category needs to be input (in place of default, coming from item category determination table T184)

Functionality – Billing relevance

Return Sales order – update of Item category change

Complaint Processing –

3. Business does not want any major changes

Functionality – copy control

Userexit, enhancement

Propose order quantity in return sales order

4. View selected Order reasons in VA01/2

Functionality – make order reason a “mandatory” field in RE process, useful for reporting

Userexit, concept of Ztable (important and used frequently)

Order reason codes – specific to sales order type

User Exits In Sales Document Processing – System Modifications – SAP Library

Side comment: For a SD consultant to understand, identify the appropriate user exits that can be used for a requirement is very helpful.

5. important:

  • Visualize the flow of goods. Most of the times, business wants to have clear distinction between sales goods flow and re goods flows.

Functionality – Shipping condition for returns process

different shipping point for returns delivery

Discussed in point 3, below, configuration

6. Should returned goods be part of Salable stock or not?

Functionality – Movement type 651, 653

sales returns

Movement type for Sale return

Return Delivery from Customer with Movement type 653 – Toolbox for IT Groups

Important – DN is the schedule line category provided for return process, in standard. VOV6

7. Business process and enterprise setup

Functionality – Enterprise structure > assignment > Sales org, distribution channel to delivering plant. An important step in SD

Intercompany Return Process Error

8. Pricing – what components to refund to customer? should tax component be refunded? should freight be refunded?

Functionality – Pricing

Return process

Side comment: In every aspect of SD design/tickets, mentally check – is there any impact on pricing?

9. Flow of goods in return direction, to which plant should goods be returned?

Functionality – Delivering plant (receiving)

Return order

Good example of a business requirement

10. Quantity in return order, compared to quantity in sales cycle

return order

Return order with reference to the Billing Document

11. (09Aug15 updated) 11 merged with 1

12. Functionality – Billing block

Generally in returns, credit, billing block is setup. Billing block can be setup at different levels (header, item) in RE order

Below thread touches on authorization also.

Unable to remove biling block return sales order

Billing block

Important is to read the error message carefully, it gives clues, for solution

13. Functionality – REN, item category

Item category in a return order

(added on 08DEC2014) 14. Functionality – Billing (return credit note) created with reference to return delivery

(In standard, RE bill is created with ref. to RE order)


asked to include this. In few of my projects, companies have RE credit note created with ref. to RE delivery (and not order). There could be few business reasons to this process:

– The business would like to inspect the goods in their warehouse and then give refund, if applicable

– Quantity in delivery could be different from that in the RE order, so refund is given on the actual quantity that the business receives.

From configuration point,

14.1. copy control VTFL: RE delivery to RE bill is same as LF to F2,

and at item category level, copy control of REN is same as and item category TAN

14.2. item category REN, billing relevance should be A (delivery related billing)

Delivery Related Billing rather than Order Related Billing in Return Sales


Returns in standard SAP:

1. Return order created with reference to billing document

RE order can be created without reference or can be created with reference to sales order. But best practice is to create with reference to invoice

At item level of copy control configuration, pricing type is an important functionality – should prices be copied unchanged or any other way. The business requirement dictates pricing type. VTAF


2. Return document type

In several projects, I have noticed that field Reference mandatory has played an important role. Take note: when creating any custom reports, the SD document category is H, at transaction level, in order VBAK-VBTYP; at configuration level, in order type TVAK-VBTYP.

Different number ranges are given to RE orders, for easy recognition and reporting purposes. VOV8

2.doctype, reference mandatory.jpg

3. Continuing with order type, shipping condition can play an important role. Also billing block given here, then in sales order, at header level billing block will be set automatically. Business has to remove the billing block from the sales order in order to create a RE credit memo. If business does not want to give RE credit note, then a reason for rejection can be put

3.doctype, shipping condition, billing block.jpg

4. Item category

In addition to field billing relevance, also note field Returns has to be activated for all return processes including credit memo, check G2N. VOV7


5. Schedule line category

Movement type is an important field. 653, 655, 657 Availability check and Transfer of Requirement has been deactivated, as these functionalities are not required for goods coming into the plant. VOV6


6. Delivery item category

The item category name REN remains the same in sales order, delivery and billing

Relevant for Picking in deactivated as goods are coming into the plant. Document category is T, sometimes needed for analysis in VTFA. 0VLP (zeroVLP)


7. Billing type

The RE credit can be cancelled, for that SAP standard cancellation billing type is S2. Additional requirements can be setup, conditions where cancellation is permitted in copying requirements. Does a company want the option to cancel the RE credit memo is a business decision. VOFA


All the screenshots are from SAP, copyright by SAP AG.


Career Center

Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Srinu S
      Srinu S

      Hi TW,

      Thanks for sharing the helpful document and after your blog we need not Google it for multiple scenarios of documents for  sales RETURNS process.

      Returns process is very common in every implementation project which every SD consultant must be familiar.



      Author's profile photo Typewriter TW
      Typewriter TW
      Blog Post Author

      hi srinu,

      thanks for the kind words!

      please give some interesting threads / material related to RE, we will include those in the document 🙂


      Author's profile photo Srinu S
      Srinu S

      Hi TW,

      Sure will do that, but as per my knowledge i think most of them are already covered in this document.


      Srinu. 🙂

      Author's profile photo venu gopal
      venu gopal

      Dear T.W Sir

      Thank you so much For your Time being on this Blog , Surly it will help For return process scenarios To all consultants  

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Hi Sir T.W ;

      It is well explained blog post related with returns. Thanks for sharing .


      M.Ozgur Unal

      Author's profile photo Kamlesh Kumar Arya
      Kamlesh Kumar Arya

      Dear T.W Sir.

      Its really great effort to bring comprehensive return process in one post. probably it will clear all the doubts related return process for SAP SD.

      Thanks for sharing wonderful post 🙂 . it helped to empathize the functionality in a easy  way.

      Kind Regards


      Author's profile photo Typewriter TW
      Typewriter TW
      Blog Post Author

      venu, mehmet, kamlesh, thanks for your kind words!

      SAP training material has structured this in a very good way!

      In topic "Complaint Processing" they discuss cancellation, credit, invoice correction and returns processes.

      If someone treats all these processes under one group - studying all these processes, then it will benefit immensely. Also the learning will be well-rounded!

      All these processes have common functionalities - billing block, reference mandatory, copy control (to create order) etc.

      Over the years, complaint processes have help me, i have implemented these processes and companies are using these standard processes for their business satisfactorily 🙂


      Author's profile photo SANJIT BHATTACHARYA

      Hi Typewriter,

      Wonder full document to have as a reference.I want to have one more screen shot from you if it is possible then please give it.

      If we want to give credit not with reference to return delivery document then what will be the copy control setting in VTFL at header and item level. As I know generally we use to give  create Credit note with reference to return order only.

      And when we are giving credit note with reference to return order or return delivery we can add material in to that which is not there in return order or return delivery.How to handle that situation so that we can not add extra material which is not their in reference document,although even we give extra material in credit note it will not create accounting document.

      Warm Regards,

      Sanjit Bhattacharya

      Author's profile photo Typewriter TW
      Typewriter TW
      Blog Post Author


      Thank you for the post! I am working on credit note with ref to return delivery and will update this document.

      For the second point, you are saying in the RE order 1 TV , then in the RE credit note we can add another line item directly say 1 washing machine. Is this your scenario?


      Author's profile photo SANJIT BHATTACHARYA

      Hi Typewriter,

      Nice to know you are working into my requirement.

      For the second point yes we can add extra material in RE credit note like what you have said 1 TV with 1 Washing Machine but my requirement is that we should not able to do that because 1 washing machine is not there in return order.

      Warm Regards,

      Sanjit Bhattacharya

      Author's profile photo Typewriter TW
      Typewriter TW
      Blog Post Author

      Hi Sanjit,

      added point 14:RE credit note with reference to RE delivery

      I have tested and in RE credit note, I could not add any new item (or change any existing item). Only what was there in the reference document (be it RE order or RE delivery based on the setup) populates in the RE bill.


      Author's profile photo Suhaib Bin Aziz
      Suhaib Bin Aziz

      Dear Mr. TW,

      No doubt this is great blend of effective information for all returns process catering in the system. 🙂

      Author's profile photo Former Member
      Former Member

      Hi Mr TW,

      Useful. keeping this as a reference document.

      Thank you


      Author's profile photo Typewriter TW
      Typewriter TW
      Blog Post Author

      Updated this document with additional threads and comments.

      added: Business processes have to be revised and revisited.


      Author's profile photo Former Member
      Former Member

      Dear TW Sir,

      Firstly, thanks for the comprehensive documentation.

      I am trying to fix a bug in my return scenario.

      Particularities are:

      - Make to Order scenario

      - Movement type 657E, blocked stock for order.

      - Condition EK02 is at Pricing procedure (not VPRS)

      The issue is:

      I can not get the stock valuated, although the accounts are determined correctly, but value is zero. Quantity is ok.

      We want the return be valuated (with EK02 as being the value).

      Best Regards.

      Author's profile photo Lakshmipathi Ganesan
      Lakshmipathi Ganesan

      Sérgio Donaire

      By referring this blog, please create a separate discussion.