Vendor Return process

[MohanMujumale]

What is return process - Return to supplier processing enables you to return damaged or unwanted products from your supplier.

Generally we are creating new return po to return the material.

Vendor return process with same PO this helps to return the stock with same price and also you can track the return in PO History.

Process 

•  Create purchase order by using ME21N t code.

• Create inbound delivery by using VL31N - By logistic department.

What is  inbound delivery - INBOUND DELIVERY in SAP pertains to all incoming goods, which may refer to either a vendor delivery or a return of a rejected delivery to a customer. It may cover the schedules of deliveries from your vendors/suppliers or even a rejected delivery to a customer. 

• Create Transfer order - By using LT03 t code and confirm the transfer order by using LT12 t code 

The Transfer order or requirement contains information about a planned movement of stock in the warehouse. 

• Post goods receipt - By using  MIGO t code 
• Post Invoice receipt - By using MIRO t code procurement

Vendor Return Process with same PO 

• Create Return Delivery against above posted GR document - Check the flag via Delivery in MIGO Use Movement type 122/124
• Display the Outbound delivery which was created - VL03N t code.

When you send any material out from the manufacturing plant it is called outbound delivery. While selling, you dispatch the material which is called outbound delivery.

• Create transfer order and confirm the same - By using LT03 t code and confirm the transfer order by using LT12 t code 
• Post Goods issue - By using VL02N 
• Post credit Memo - By using MIRO t code

Upon receiving the returned goods, the vendor issues a credit memo. This document serves as a confirmation of the return and details the amount to be credited to the organization.

Differences between Vendor Return with same PO and Different return PO:

Vendor Return with same PO	Vendor Return with new return PO
Return of the goods cab ne track in same PO history	Unable to link return po with original purchase order
Goods can be return with same price	Goods can be return with same or different price
Returns movement type are 122/124	Returns movement type are 161

 A well-documented return process supports compliance with regulatory requirements and internal controls

[jranganathan]

Thank you, Mohan Mujumale. Very useful.

[MohanMujumale]

Thankyou.

[jignesh_mehta3]

We have been using Returns to Vendor (SD) Delivery process since some time and have also implemented some checks (enhancement) in the process...

The process indeed helps Business track the Returns to Vendor for a particular Purchase Order (MIGO). 

[MohanMujumale]

Yes.