Returnable Transport Packaging (RTP) in SAP S4/HANA: Business Process, Manuals & Configuration

[RezkiaLaelatunisa]

RTP Introduction

Returnable transport packaging is reusable packaging (e.g., pallets, containers) used for multiple shipments between vendors and customers, reducing costs and waste.

Why does industry use RTP?

• Industries like automotive, food & beverage, chemicals, and pharmaceuticals use Returnable Transport Packaging (RTP) to reduce costs, minimize waste, and support sustainability.
• Purchasing new packaging for each shipment is expensive and environmentally harmful, while poor tracking can lead to financial losses, supply chain disruptions, and penalties. Manual management of RTP is error-prone, making SAP’s automated solutions essential. SAP optimizes RTP through special stock management, automation in procurement and sales, and cross-module integration in MM and SD.

What are the key characteristics of RTP in SAP?

• RTP is maintained as special stock & belong to the vendor > not valuated > no accounting entry.
• The special stock is automatically updated when there are goods movements.
• RTP stocks are always unrestricted use (not possible in quality inspection nor blocks)
• RTP can be negative (depends on the system configuration): when GI before GR.
• Transfer posting RTP to your own stock is not allowed.

*disclaimer, the term vendor and supplier in SAP refers to the same entity and can be used interchangeably.

Basic Concept
Packaging
Definition
The term packaging encompasses three kinds: 

Packaging Owner
The owner of the packaging can be either:

Material Type for Packaging Scenario

Returnable Packaging Scenario Supported by SAP

In this article, we will cover the RTP (Returnable Packaging to Vendor) Scenario.

Example Industry using RTP

Business Process

For RTP, the process flow in the business is categorized into three categories,

• For supplier-owned packaging

Supplier sends materials with packaging → Packaging is received by the company (customer) along with the material → Material is unpacked and used, while the packaging is stored → Empty packaging is returned to the supplier for reuse → Tracking of packaging material is done via returnable packaging accounts.

This is the scenario that we want to demonstrate in this article.

• For customer-owned packaging

Company (customer) sends empty packaging to the supplier → Supplier delivers materials using the provided packaging → Material is unpacked and used, and the packaging remains with the company → Packaging is refilled/reused for subsequent shipments → Ownership of the packaging remains with the customer throughout the process

• For service provider-owned packaging

A third-party service provider supplies empty packaging to the supplier → Supplier sends materials using service provider's packaging → Material is received and unpacked by the company →Empty packaging is collected by the service provider from the company → Service provider manages the cycle, including cleaning, maintenance, and redistribution to the supplier.

SAP Demonstration
Process Flow
Two of many ways to demonstrate RTP in the SAP System:

• While doing GR from PO and add a new line using transport equipment (movement type: 501 M).
• Including RTP in Purchase Order.

Here is the SAP process flow for the first scenario:

Step 1 - Create material with material type LEIH
T-code: MM01

Fill out the material type as well as material group as returnable packaging.

Step 2 - Create Purchase Order for the main material (the material wrapped in the packaging)
T-code: ME21N

Step 3 - Goods Receipt Material, Add Transport Equipment
T-code: MIGO
Movement type: 501M

 

Stock Checking
T-code: MMBE

Step 4 - Return the packaging material to vendor.
T-code: MIGO
Movement type: 502M

Summary of RTP in SAP S/4HANA

Returnable Transport Packaging (RTP) is supplier-owned, non-valuated special stock with stock type M that is used across industries to reduce costs and waste.

Hope it helps,

Rezkia