- SAP Managed Tags:
Most of the large companies run SAP and some data shows that 75% of world’s transaction happen in SAP. Most of these companies operate in several countries and there are transfer of their products from one country to another. This transfer of materials can occur through
- classic intercompany or advanced intercompany stock transfer
- advanced intercompany sales and advanced intercompany stock transfer
as shown in below image.
However, there may be situations that receiving company wants to return the received materials to the delivering company for different reasons like poor quality, over-delivery etc. SAP S/4HANA provides the option of cross-company stock transfer order to return the material to the delivering company using Advanced return management (ARM) as shown in below image.
Process starts with a
- Return cross-company stock transfer order with a flag on ‘Return item’
2. Outbound delivery is created from the return STO.
3. Inbound delivery is created from SPED output of the outbound delivery
4. Goods receipt happens with movement type 673 and stock moves to Quality inspection
5. Inspection certifies the material as OK
6. Stock is moved to Free available stock as Logistic follow up activity
7. Credit memo is created with respect to the inbound delivery
ARM also provides a Return overview with all the relevant documents and their statuses.
ARM provides an integrated and transparent return with automatic logistical follow up activities for all possible return scenarios.ARM also works well with EWM managed warehouses.
This blog is based on my personal insights, observation, and tests in SAP S/4HANA 2023 FPS01 release in my preparation for Workshop on Reverse Logistics for Advanced intercompany flows for one of my projects. Will appreciate your views / comment and feedback.
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