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Author's profile photo shailesh mishra

Advanced Return Management Integration with SAP S/4 HANA Embedded EWM 2020

From S/4 HANA 1709 Embedded EWM, for Customer return process, SAP has introduced that all customer return process has to be mapped through ‘Advanced Return Management( ARM). ARM is an extremely powerful tool for all reverse logistics to capture nearly all the complex return process with minimal number of touch.

ARM can also be mapped into Decentral EWM, however, for customer return, it is not mandatory to have ARM into decentral version for both S/4 and 9.5. SAP note

2938308 – Release information and restrictions of Decentralized EWM on SAP S/4HANA 2020

This blog is specifically written how ARM for customer return can be integrated to SAP embedded EWM 2020

To get the required document type and item types in SAP EWM, SAP recommends to activate following  BC sets

  • /SCWM/DLV_TRANSFER_ARM_TYPE( Required to extend the posting change process by adding an item type for quality inspections stock when there are no further activities.


  • /SCWM/DLV_OUTBOUND_BACK_CUST( Required for the outbound process to send returned goods back to the customer)


As per note 2938308, SAP has clearly outlined how ARM can be integrated to EWM based upon 3 different versions, so its imperative for customers to decide how returns process can be configured into their existing business process.


Step 1:Create a return customer sales order, take order CBAR or RE2. There is another BC sets for ARM in S/4 or ECC to work with required document type and item categories.

Based on customization, multiple return reasons can be configured.


Step 2: The moment return sales order is created, automatic Inbound delivery is created and distributed to EWM system. All return activity can be monitored in return sales order.


Step 3:  Inbound delivery is distributed and has ARM stamp on it


Step 4: Perform goods receipt( Pack is optional if returns shipment is palletized or want to track box or case level inventory)

The ARM inspection lot is marked with unique inspection ID type


Step 5: Carry our material inspection in S/4. MSR_INSPWH


Multiple inspection codes 0001-OK or not OK can be configured in the system.

ARM has given extremely powerful options to carry out multiple options based on follow up activity like if returned shipment needs to be sent to vendor, scap, or ship to another plant via STO. Based on follow activity and customization done, SAP created those follow on document automatically.

for this example, shipment is diverted to specified storage location.


Step 6: Stock type from R7 to R2 changed with posting change delivery

All logistical activity is completed.

Now, returned shipment can be moved to desired storage type by creating warehouse task. This completes the ARM activity in EWM, similarly stock in S/4 is posted from blocked to unrestricted.

This blog captured very basic ARM scenario. In future, I would explain more follow on function like return STO, ship to vendor and others.

Thanks for reading. I would highly appreciate any recommendation or feedback to make this blog more productiv.

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      Author's profile photo Sahil Shaikh
      Sahil Shaikh

      Hey shailesh mishra ! Thanks for this blog - a much needed one! I have one question - can the inbound delivery creation be made manual instead of automatic? And how can a manual ARM delivery be created in EWM?

      Author's profile photo Niraj Kumar
      Niraj Kumar

      Hi Shailesh,

      Thanks a lot for this blog. Recently while testing ARM process with Embedded EWM , I have observed that if I first post GR of return IBD and  then  reverse the GR in EWM and later if I again try to post GR of same delivery  then system generates inconstancy. it only posts GR in EWM but ignores posting in ERP and also it doesn't generate any PPF for ERP. Later it doesn't allow to cancel GR in EWM. Could you please share your though on this? if possible could you please provide the reversal steps of ARM with EWM?





      Author's profile photo F. IV-Functioneel Beheer
      F. IV-Functioneel Beheer

      Hi Shailesh,


      Thanks for helpful posting. I would like to ask one thing which does not work properly in our process (Embedded EWM) When we post GR for ARM return delivery system does not create any ARM related inspection lot. But I can see in the delivery that there is ARM stamp E on the delivery. That`s why system get error message after material inspection in Hana because system could not find EWM quant with an ARM inspection lot reference.

      Author's profile photo Saya Narasappa
      Saya Narasappa

      Hi Shailesh,


      Thanks for the blog.

      I am facing the issue of Inbound delivery completion DCO status for return delivery.

      Performed the GR and inspected the delivery from MSR_INSPWH and logistical follow up activity is done, and performed the putaway for the delivery, but the delivery is not completing.

      Due to this unable to create invoice or refund by OTC team.

      Can you help on this.





      Author's profile photo Ganesh Navale
      Ganesh Navale

      Hi Shailesh,


      Is there any how to config guide release by SAP for S4Hana Embedded in integration with ARM because it seems many function which was supported in Decen. EWM are not supported in eWM.



      Ganesh N