Supplier Returns in SAP S/4HANA
Efficient, transparent, and integrated returns management
Advanced Return to Supplier (BMK)
Returns to suppliers are a core element of the procurement process – whether due to defective quality, incorrect deliveries, or contractual return rights. SAP S/4HANA supports this with the Advanced Return to Supplier (BMK) process: an integrated standard process that increases transparency, integrates Quality Management (QM) inspections, and reduces manual effort.
Supplier Returns in SAP ECC vs. SAP S/4HANA
With SAP S/4HANA, the supplier return process is modernized and automated:
- User-friendly Fiori apps: Instead of traditional transactions such as MIGO or ME21N, apps like “Create Purchase Order – Advanced” or “Receive Replacement Materials - From Vendor” enable intuitive operation.
- Centralized returns management: Monitoring and control of all return processes within an integrated workflow in the returns overview
- Automated follow-on documents: Return deliveries, replacement materials, and credit memos are generated with system support.
- QM integration: Inspection lot creation, blocked stock, and inspection results are directly integrated into the process.
- Transparent material flows: Movement types such as 161/162 enable traceable postings for returns and cancellations.
Alternative: NB Standard Purchase Order with Replacement Material
For simple and infrequent returns, the return can be initiated by setting a return indicator on an NB standard purchase order.
- Combined document: Return and replacement order in a single document
- Partially automated: The replacement material item can be copied from the return item
- No QM process required (e.g., in cases of incorrect or overdelivery): Quantity correction via an NB return item with manual return indicator, without inspection lot or blocked stock
- Recommendation: Suitable for straightforward returns where replacement material is delivered directly by the supplier and no deep integration with Quality Management (QM) or Sales and Distribution (SD) is required
Key Steps for Advanced Return to Supplier
The SAP scope item BMK forms the basis for the Advanced Return to Supplier process. It combines Advanced Returns Management (ARM) capabilities with Quality Management (QM) inspections and automated follow-on processes, such as replacement deliveries and credit memos. This enables complex return scenarios to be handled efficiently and transparently.
Important steps in the Advanced Return to Supplier process
- Manage Purchase Orders: All return-specific data – material, quantity, price, shipping details, follow-up actions, and return reason – are centrally maintained in the document.
- Post Goods Issue: The return of goods is controlled via the goods issue posting, including the update of blocked stock.
- Order Replacement Material: Automatic creation of replacement deliveries with quantity, batch, and storage location data; fully integrated into the return process
- Invoice Verification: Automatic posting ensures that the credit memo for returned material and the invoice for replacement material are generated correctly without manual rework.
- Monitoring & Reporting: Apps such as “Monitor Purchase Order Items” or the returns overview enable end-to-end tracking of all process steps and related documents.
