Overview
The Sales Return Process is used when a customer returns goods. It typically involves creating a Return Order, Return Delivery, Goods Receipt of the returned material, and issuing a Credit Memo to the customer.
Prerequisites
- Original Sales Order and Billing Document exist (recommended)
- Customer master and material master are properly maintained
- Return Order Type (usually RE) is configured
- Return Delivery Type and Credit Memo Billing Type are configured
- Authorization for VA01, VL01N, MIGO/MB01, and VF01
Step-by-Step Process
1
Create Return Sales Order (VA01)
- Go to transaction VA01
- Order Type: Enter RE (Returns)
- Enter Sales Area (Sales Org + Distribution Channel + Division)
- Enter Sold-to Party (Customer)
- Enter Material and Return Quantity
- Enter the original Billing Document or Sales Order as reference (recommended)
- Check pricing and reason for rejection / return reason
- Save the Return Order and note the number
2
Create Return Delivery (VL01N)
- Go to transaction VL01N
- Enter the Return Order number
- Enter Shipping Point
- System creates a Return Delivery
- Check the delivery quantity
- Save the Return Delivery and note the Delivery number
3
Post Goods Receipt for Returned Material
- Go to transaction MIGO or VL02N
- In MIGO: Select Goods Receipt → Outbound Delivery (or Return Delivery)
- Enter the Return Delivery number
- Movement Type is usually 653 (Returns from Customer unrestricted) or 651
- Check storage location and quantity
- Post the Goods Receipt
Stock of the returned material will now increase in the system.
4
Create Credit Memo (VF01)
- Go to transaction VF01
- Enter the Return Delivery number (or Return Order)
- Billing Type is usually RE or G2 (Credit Memo)
- Review pricing and quantity
- Save the Credit Memo
- System generates the Credit Memo number and Accounting Document
5
Verify the Process
- Check Return Order status in VA03
- Check stock of returned material in MMBE
- Display Credit Memo in VF03
- Verify accounting document (Customer credit and inventory posting)
Quick Process Flow
VA01 (Order Type RE) → VL01N (Return Delivery) → MIGO / VL02N (Goods Receipt) → VF01 (Credit Memo)
Important Document Types
| Document | Common Type | Description |
|---|---|---|
| Return Sales Order | RE | Returns Order |
| Return Delivery | LR / Returns Delivery | Delivery for returns |
| Goods Movement | 653 / 651 | Returns from customer |
| Credit Memo | RE / G2 | Credit Memo billing type |
Related Transaction Codes
| T-Code | Description |
|---|---|
| VA01 | Create Return Sales Order (Order Type RE) |
| VA02 / VA03 | Change / Display Sales Order |
| VL01N | Create Return Delivery |
| VL02N | Change Delivery / Post Goods Receipt |
| MIGO | Goods Receipt for Return Delivery |
| VF01 | Create Credit Memo |
| VF03 | Display Credit Memo |
| VA05 | List of Sales Orders |
| MMBE | Stock Overview |
Important Notes:
- It is always recommended to create the Return Order with reference to the original Invoice or Sales Order for correct pricing and tracking.
- Return reason codes should be maintained for analysis.
- Quality inspection can be activated for returned materials if required (Inspection Type 06 or similar).
- Credit Memo can be created with reference to the Return Order or Return Delivery depending on configuration.
Helpful Tips
- Use Create with Reference in VA01 to copy data from the original billing document.
- Check the Return Reason field for proper reporting and analysis.
- After Goods Receipt, the material can be posted to unrestricted, blocked, or quality inspection stock based on settings.
- You can create a Credit Memo Request (CR) first and then convert it to a Credit Memo if approval is required.
- Monitor open returns using VA05 with document type RE.