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:
- Create return delivery using MIGO for the 15 defective keyboards
- System uses movement type 122
- Vendor sends replacement keyboards
- 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:
- Create return purchase order with the "Return Item" checkbox selected
- Process goods movement using MIGO (movement type 161)
- Create credit memo (not invoice) to balance accounts
Prerequisites
Material Master and Vendor Master must be maintained in the system
Create Purchase Order
T-Code: ME21N
Enter all required details for the purchase order (material, quantity, etc.)
Note purchase order number (#) for future reference.
Document is created with movement type 101
Perform Goods Receipt
T-Code: MIGO
Select "Goods Receipt" and enter your purchase order number
Create Return Delivery
T-Code: MIGO
Select "Return Delivery" and enter your material document number
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
Receive Subsequent Delivery
T-Code: MIGO
Select "Subsequent Delivery" and enter the material document number
Process Invoice
T-Code: MIRO
Standard invoice verification process
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)
Create Return Purchase Order
T-Code: ME21N
Enter all required details as in a normal PO
CRITICAL: Check "Return Item" box in the item details
This will make the price negative in the conditions tab
Movement type 161 is automatically selected
No need to manually change movement type
Perform Goods Return
T-Code: MIGO
Select "Goods Receipt" and enter your return PO number
Process Credit Memo
T-Code: MIRO
Enter the return purchase order number
CRITICAL: Select "Credit Memo" instead of "Invoice"
If you select "Invoice", the amounts will double instead of balance
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
ME21N
Create Purchase Order
MIGO
Goods Movement
ME23N
Display Purchase Order
MIRO
Enter Incoming Invoice
Movement 101
Goods Receipt
Movement 122
Return Delivery
Movement 161
Goods Return (for Return PO)