SAP S4 HANA MM

Vendor Return Process

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Mob. No: - 7975776231

Vendor Return Process in SAP MM.

In this topic you will learn about, what is Vendor Return Process and you will understand
how to return the Goods with two Scenario.
In SAP we can handle Vendor Return Process by using 2 Scenario:-

✓ Return Delivery with Movement type 122 wrt Standard purchase order and
Goods receipt (Mvt 101)
✓ Vendor return wrt return Purchase order and Goods receipt with Movement
161

What is Vendor return Process

The vendor return process in SAP involves returning goods or materials to a vendor due
to various reasons such as quality issues, incorrect delivery, or overstock situations.

Scenario 1
Scenario 2

1.Create
Material Master
5.Credit Memo
MM01 and
in MIRO wrt PO
Vendor Master 1.Create Material Master
XK01 MM01 and Vendor
Master XK01

2.Return Purchase
4.Return 4.Credit Memo in MIRO Order by activating
Delivery with 2.Create Return Item
GR Document Purchase Order
number (MIGO) ME21N
Mvt 122

3.GRN wrt Return Purchase

3.Create Goods Order with movement type
Receipt wrt PO 161
(MIGO)
movement type
101
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Vendor Return Process:

Important points to remember:
✓ If you want to return delivered goods to the vendor for some reason (for
example, due to poor quality or because they are damaged), you can use this
function to return the goods, even if you have already posted the goods receipt.

When you enter a return delivery, you should reference the purchase order or the
material document, so that the system can:

✓ Suggest data to simplify data input (for example, the storage location)
✓ Check that the returned quantity does not exceed the delivered quantity
✓ Reduce the quantity delivered to date
✓ Reverse other updates that occurred (for example, for a goods receipt into
consumption) when the goods receipt was entered

Before you enter a return delivery with reference to a purchase order, you have to
determine whether the goods were posted to stock or to consumption, or whether
they were posted into goods receipt blocked stock. If you posted the goods to a
particular stock type at goods receipt (for example, quality inspection stock), you
must return them from the same stock type.

Posting a Return Delivery with Reference to the Standard

Purchase Order wrt Material Document
Choose the transaction MIGO for posting goods movements. Enter the purchase
order. In goods-receipt-based invoice verification, the system displays all the GR
items. Choose the items that you want to return, specify the quantities, and choose
movement type 122.
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Posting a New Goods Receipt with Reference to a

Return Delivery i.e Return Purchase Order
If you receive a substitute delivery after you have returned goods to a vendor, it is
advisable to reference the associated return delivery by using a reverse posting
when you post the new goods receipt.

This enables the system to suggest and update the data for this business process.
This is particularly important in goods-receipt-based invoice verification, so that the
link between the goods receipt, the return delivery, and the invoice remains intact.

The table below shows which reversal movement types you can use to reference the
associated return delivery.
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Return Delivery in Goods-Receipt-Based Invoice

Verification
When GR-based invoice verification has been defined, every goods receipt is
settled separately. This means that an invoice always refers to a material document.
When you want to return material, you therefore have to reference the material
document that you used to post the goods receipt.

Prerequisites

If the invoice for a goods receipt has already been entered, but you reverse the
goods receipt or return the goods, you have to ensure that

✓ either the relevant invoice is canceled as well

✓ or another goods receipt which refers to the same invoice is posted.
Note
In Customizing for Inventory Management, you can define for every movement
type whether a GR reversal or a return delivery is allowed when GR-based invoice
verification has been defined, even though the relevant invoice has already been
entered.

If a GR reversal or a return delivery is not allowed, you must cancel the invoice
before entering the reversal of the goods receipt or the return delivery.

If a GR reversal or a return delivery is allowed, you can post the material document
and cancel the invoice later. If you do not want to cancel the invoice, you can enter
the next goods receipt with reference to the return delivery or the reversal document
so that the link to the invoice remains intact.

Process Movement Type Account Document Transaction Key General Modifier

BSX (-) N/A

Return delivery w.r.t vendor 122 Yes WRX (+) N/A

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Prerequisites for Vendor Return Process:

Scenario 1: Return Delivery with respect to Material document
➢ Create Material in MM01 and Vendor master XK01.
➢ Create Standard purchase order in ME21N.
➢ Post Goods Receipt with respect to Purchase order in MIGO with Mvt type 101
➢ Check material Stock Overview : MMBE
➢ Posting a Return Delivery with Reference to the Material document number in MIGO
Mvt 122
➢ Again Stock Overview : MMBE
➢ Post Credit memo in MIRO

Scenario 2: Return Delivery with respect to Return Purchase

Order
1.Create Material in MM01 and Vendor master XK01.
2. Create a Return Purchase Order (PO) (Transaction code: ME21N).
➢ Create a new purchase order by entering the vendor's details, purchasing organization,
and other relevant information.
➢ In the "Item Overview" section, enter the material code and quantity of the damaged
goods you want to return.
➢ Set the item category to "Return Item" (or similar) to indicate that it is a return item.
➢ Save the purchase order.

3. Perform a Goods Return:

➢ Access the Goods Movement transaction (Transaction code: MIGO).
➢ Select the Goods Receipt option with reference to Purchase order.
➢ Enter the return purchase order number created in the previous step.
➢ Specify the material code and the quantity of the damaged goods to be returned.
➢ Provide the appropriate movement type (e.g., 161 for return to vendor).
➢ Save the goods receipt.
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4. Create a Credit Memo:

➢ Access the Logistics Invoice Verification transaction (Transaction code: MIRO).
➢ Enter the return purchase order number and select the appropriate invoice document.
➢ In the "Item Overview" section, the system should automatically display the quantity and
value of the returned goods.
➢ Verify the values and ensure they correspond to the returned damaged goods.
➢ Save the credit memo.

Or
Simple Manner for above is
➢ Create Material in MM01 and Vendor master XK01.
➢ Create Return purchase order in ME21N.
➢ Post Goods Receipt with respect to return Purchase order in MIGO with Mvt type 161
GR Return.
➢ Check material Stock Overview : MMBE
➢ Post Credit memo in MIRO
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Mob. No: - 7975776231

Scenario 1:-
Return Delivery with Movement type 122 wrt Standard
purchase order and Goods receipt (Mvt 101)

Step 1:-

Create Material in MM01

Material number 1000245 Created

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Step 2:-
Create Standard PO by Using T-Code: - ME21N quantity 100pcs

Standard Purchase order created under the number 4500000068

Step 3:-

Do GRN process by Using T-Code: - MIGO

Post goods receipt with respect to standard purchase
order with Mvt type 101
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Material document 3000391 posted

Step: - 4
Check the material stock by using T-Code: - MMBE
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If we found the material is damaged after the Goods Receipt Note (GRN) then follow the
below process for vendor return.

Step: - 5
By Using T-Code: - MIGO
Return delivery with respect to Material document to vendor as per damaged quantity (122
Mvt. Type) for 25 quantity
Put the Reason for movement: - Damaged/poor.
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Material Document number 3000392 created

Step: - 6
Check the stock by Using T-Code: - MMBE
Stock 0f 25 Quantity has been returned to vendor .
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Check the material movement by right click on it.

It will show the movement type

Step 7:-
Post the Credit memo in MIRO
LinkedIn | Akash S K
Email :- [email protected]
Mob. No: - 7975776231

Scenario 2:-
Vendor return wrt return Purchase order and Goods receipt
with Movement 161

Step: - 1
Create Return Purchase Order by Using T-Code: - ME21N
For return PO tick on Return Item as below.

Return Purchase order is created under the number 4500000070

Step 2:-

Stock overview before doing GRN MMBE:-

75 Quantity is available
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Step: - 3
Do GRN with the reference of Return PO by Using T-Code: - MIGO
Movement type for Return GR (161 – GR return) for 10 quantity
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Material document 3000394 posted

Step:- 4
Again Stock overview by MMBE
65 Quantity is available

Check the material movement by right click on it. It will show the movement type

Step 5:-
Post the Credit memo in MIRO