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

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.