SAP MM Vendor Return Processes

SAP MM Vendor Return Processes

Interactive visualization of vendor return and subsequent delivery processes

Process 1: Return with Original GR Document

When to Use:

Use this process when you have received goods and identified quality issues, damage, or incorrect items shortly after receipt.

Example Scenario:

Your company ordered 100 computer keyboards. Upon inspection after receipt, you found that 15 keyboards have defective USB ports. Since you have the original goods receipt document, you'll use Process 1 to return the defective keyboards and receive replacements.

Implementation Steps:
  1. Create return delivery using MIGO for the 15 defective keyboards
  2. System uses movement type 122
  3. Vendor sends replacement keyboards
  4. Receive subsequent delivery with movement type 101

Process 2: Return without Original Document

When to Use:

Use this process when returning items accumulated over time, when you no longer have the original documents, or for returning unused/unsold items.

Example Scenario:

Your retail store orders 50 magazines daily. At the end of the week, you have 75 unsold magazines from different days. Since these are from multiple receipts over time, you'll use Process 2 to return them all at once.

Implementation Steps:
  1. Create return purchase order with the "Return Item" checkbox selected
  2. Process goods movement using MIGO (movement type 161)
  3. Create credit memo (not invoice) to balance accounts

Prerequisites

Material Master and Vendor Master must be maintained in the system

1

Create Purchase Order

T-Code: ME21N

Enter all required details for the purchase order (material, quantity, etc.)

1

Note purchase order number (#) for future reference.

Document is created with movement type 101

2
2

Perform Goods Receipt

T-Code: MIGO

Select "Goods Receipt" and enter your purchase order number

3

Create Return Delivery

T-Code: MIGO

Select "Return Delivery" and enter your material document number

3

Movement type 122 is automatically selected

IMPORTANT: Select reason for return (e.g. Poor Quality)

Movement type 101 is automatically selected

Used to receive replacement for returned goods

4
4

Receive Subsequent Delivery

T-Code: MIGO

Select "Subsequent Delivery" and enter the material document number

5

Process Invoice

T-Code: MIRO

Standard invoice verification process

5

No special settings needed for this invoice

Financial accounting handles the rest

Key Points to Remember

  • ! Always indicate the reason for return when creating return delivery
  • ! Check purchase order history (ME23N) to verify all steps are recorded correctly
  • ! Movement type 122 for return delivery, 101 for subsequent delivery

When to Use This Process

Use this process when you don't have the original material document or purchase order, or when returning accumulated items over a period (e.g., unsold newspapers, magazines)

1

Create Return Purchase Order

T-Code: ME21N

Enter all required details as in a normal PO

1

CRITICAL: Check "Return Item" box in the item details

This will make the price negative in the conditions tab

If not checked, the return process will not work correctly

Movement type 161 is automatically selected

No need to manually change movement type

2
2

Perform Goods Return

T-Code: MIGO

Select "Goods Receipt" and enter your return PO number

3

Process Credit Memo

T-Code: MIRO

Enter the return purchase order number

3

CRITICAL: Select "Credit Memo" instead of "Invoice"

If you select "Invoice", the amounts will double instead of balance

Common mistake that can cause accounting issues

Key Points to Remember

  • ! Always check "Return Item" box in the return purchase order
  • ! Prices in return PO will show as negative values
  • ! Movement type 161 for goods return
  • ! Always select "Credit Memo" instead of "Invoice" in MIRO

SAP T-Codes Reference

ME

ME21N

Create Purchase Order

MG

MIGO

Goods Movement

ME

ME23N

Display Purchase Order

MI

MIRO

Enter Incoming Invoice

101

Movement 101

Goods Receipt

122

Movement 122

Return Delivery

161

Movement 161

Goods Return (for Return PO)

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