Document objective is describe the Advance Return Management Functionality for supplier Return with Business process flow and the IMG settings.


1.  Introduction

Purpose and Scop

Advanced Return Management component used to manage customer returns and supplier returns.

Customer returns are returns from a customer to a company location or an external vendor.

Supplier returns are either returns from a company location to an external vendor (return to vendor) or returns from one company location to another (stock transfer).However this document describes the process of Supplier Returns only.

ARM having below advantages over normal vendor return


  1. In Normal return PO shipping function is not present. ARM return PO have LE – shipping function similar like STO.
  2. Tracking of return with vendor by Returns Material Authorization (RMA) number.
  3. Credit Memo by Vendor.
  4. Replacement Material from Vendor.
  5. Intercompany Billing in case of Cross Company Code Store Returns.

  RMA number is a reference number for return which is important entry in return purchase order. It could be provided by vendor on request OR generate at customer location by mutual agreement between vendor and customer. It could use in many ways according to business process requirement.

System requirement and Technical data for ARM

Technical Name of Business Function

OPS_ADVRETURNS_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP ERP 6.0 Enhancement Package 4

Technical Usage

Central Applications

Application Component

E4A0000031 

Application Component ID

LO-ARM

First Release Date

15-04-2008

First Release

701

First SAP component LO-ARM (Logistics Advanced Returns Management) need to activate through SPRO.

2.  LO- ARM component activation

Go to SPRO and execute Activate Business Function

Expand Enterprise business function

Then activate below components.

3.  Process Flow

The buyer creates a Return purchase order in the 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 and shipping data.

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 When the shipping department creates the delivery the item(s) are withdrawn from stock.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

4.  Master data set up for Return purchase order

4.1. Material Master

In Sales Org 2 view of material master, valid Item category group should be maintained.

The Item category group should exist in table T184L with delivery type RL.

Table T184L maintained by below IMG step.

IMG: SPRO > Logistic Execution > Shipping > delivery > Define Item Category Determination in Deliveries.

4.2. Vendor Master

In Vendor master – Purchasing data following fields need to maintain.

Table

Field

Description

Value

LFM1

KZRET

‘Return vendor’

X

LFM1

Vendor_RMA_REQ

‘RMA required’

X

Once you check these 2 fields, the system pop up a window and in that you need to enter

  • Customer number
  • Account group
  • Shipping condition

Press Enter, System will open customer master creation screens where mandatory fields needs to fill.

 

 

 

 

  

After save, system will create the dummy customer and it gets reflected in vendor master. This customer master required to create shipping documents.

New customer master create and display in Vendor- purchasing data.



Activate Return Vendor Check in Vendor master.

This check is non editable in XK02 – Vendor master change.  But when it open in XK03 and the select the Display-> Change (F5), this field will open in purchasing screen.

5.  Configuration Steps

In Z42, advanced return management related configurations need to perform to enable plant for return, Setup new purchase order document type, Return delivery type at document type level, Reflect Shipping tab in purchase order, Shipping point determination for outbound delivery creation.

Activates advanced return management for Return Purchase Document types

SPRO –> MM –> Purchasing –> Purchase Order –> Return Order -> Advance Return Management -> Activate Advanced Return Management for Purchase Order Type

  

Assigned Return delivery type to supplying plant and document type

SPRO –> MM –> Purchasing –> Purchase Order –> Return Order -> Return to Vendor

  


SPRO –> MM –> Purchasing –> Purchase Order –> Return Order -> Store Return / Return plant to plant

  

Assigned return delivery type to checking rule

SPRO –> MM –> Purchasing –> Purchase Order -> Set up Stock Transfer Order -> Assign Delivery Type and Checking Rule.


Activate Follow up Activity

SPRO –> MM –> Purchasing –> Purchase Order ->Return Order -> Advanced Return Management -> Activate and Rename Follow up Activity

Check the 0005- Ship to Vendor

6.  Output type determination for delivery

SPRO –> Logistic Execution -> Shipping -> Basic Shipping Functions -> Partners ->

Set Up Parameter Determinations for Deliveries


Here partner determination procedure RLL assigned to Delivery type RL

Then in Partner function add and activate Partner function SP with RLL.

7.  Return Purchase Order creation

Advanced Return Management for Vendor return

With Advanced Return Management component activation, 3 new purchase order types will be available.

  • NB2 (Enhanced Return to Vendor),
  • NB2C (Enhanced Return to Vendor Cross Company)
  • UB2 (Enhanced Returns Stock Transport Order Intercompany)

Create Return purchase order by ME21N with document type NB2.

Fill Vendor and necessary organizational data.

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


Under Return Tab you can find the Vendor RMA number, But RMA number need to fill in item level.


Note – Standard SAP not allow to store RMA Number at Header level. 

Because the data on Header tab – Returns serve only as template for copying them to the item data and will not be stored in the database. Relevant for the further process are the ITEM “Returns” data only.

As a solution we put the RMA number ate Item level.

Please see attached SAP Note 1515540.

In Shipping Tab, Shipping data available to check.

If shipping tab is not appear, then check all the settings for delivery type RL.

Customer should be properly maintained with valid sales organization, distribution channel, division.

Shipping condition, shipping point along with delivery type should be configured.

Loading group and transport group will be captured from material master sales view.

By VL10B, outbound delivery will create.

Return Delivery can be viewed in VL03N.

Then after normal Picking and Packing, Good issue can be done for delivery.

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