Exploring the Return to Supplier (BMK) Scenario

The supplier return (or return to supplier) process described in this scenario differs significantly from a simple return delivery to the supplier:

In contrast, a supplier return is treated as a standalone process. It does not reference a specific initial procurement transaction.

The process begins with the creation of a return purchase order, followed by the goods return, and concludes with the creation of a credit memo, which transfers the liability back to the supplier.

• Return Delivery

  A return delivery is a direct follow-up to a goods receipt for a purchase order. It is processed as a goods issue posting, with or without a delivery document, and is directly linked to the original purchase order.

  Example: Goods are returned immediately after receipt due to quality issues.

• Supplier Return

  In contrast, a supplier return is treated as a standalone process. It does not reference a specific initial procurement transaction.

  The process begins with the creation of a return purchase order, followed by the goods return, and concludes with the creation of a credit memo, which transfers the liability back to the supplier.

  Examples of return to supplier scenarios:

  • You procure filters from a supplier and return the used filters for recycling. In return, you receive a credit note at the agreed price.

  • You have an agreement with your cable suppliers to return cable residues. You then receive a credit memo for the value of the copper contained in the cables (Paul’s scenario).

  • After a promotion or the end of a season, you return unsold merchandise to your supplier and receive a corresponding credit note.

SAP S/4HANA Cloud Public Edition offers two distinct approaches for handling returns to suppliers, depending on the complexity and requirements of the return process:

To process a basic return to a supplier:

• Use the Create Purchase Order – Advanced app and select the order type Standard PO (NB).
• At the item level, manually set the Returns Item indicator.
• Return items can be combined with regular order items in the same purchase order, allowing you to order and return goods simultaneously.

To post the goods return, use either of the following apps:

• Post Goods Movement
• Post Goods Receipt for Purchasing Document

Optionally, you can also process the return using shipping functionalities.

If shipping documents or loading lists are needed:

• Ensure the Returns Supplier checkbox is selected in the supplier master record (under purchasing organization data).
• Use the My Purchase Orders – Due for Delivery app to create the outbound delivery.
• Use the Manage Outbound Deliveries app for picking and posting the goods issue.

To create a credit memo, use the Create Supplier Invoice app

For more structured returns processing:

• Use the Create Purchase Order – Advanced app and select the order type Enh. Ret. to Supplier (NB2).
• The Returns Item indicator is automatically set and cannot be removed.
• Only return items are allowed in this type of purchase order - no mixing with regular items.

Using shipping functionalities for the delivery process is mandatory in this scenario.

• Use the My Purchase Orders – Due for Delivery app to create the outbound delivery.
• Use the Manage Outbound Deliveries app for picking and posting the goods issue.

Optionally, you can request replacement materials.

After the return, you can request a replacement material using the Receive Replacement Materials – From Vendor app. This app automatically creates:

• A new purchase order
• An inbound delivery for the replacement item

Next, follow up by putting away the replacement materials and posting the goods receipt for the inbound delivery.

We’ll now demonstrate the advanced process in the system.

Although Paul’s scenario doesn’t involve ordering replacements for returned cable residues, the process is still worth exploring.

Watch the interactive demo to learn how to create an advanced return purchase order.

Watch the interactive demo to learn how to create a return delivery with reference to a return purchase order.

Watch the interactive demo to learn how to pick the quantity to be returned and post the goods issue.

Watch the interactive demo to learn how to create a replacement purchase order.

View the following interactive demo to learn how to post the goods receipt for the replacement material.

In the following short dialog, Julia presents several follow-up activities that can be performed for replacement materials.

Watch the interactive demo to learn how to execute some follow-up activities.