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SAP SD · Lesson

Returns

Quick answer

Returns affect inventory (stock coming back), finance (credits reducing revenue/AR), and often quality (inspecting returned goods).

Key takeaways

  • A return typically starts with a returns order (a special order type), followed by a return delivery (goods received back into…
  • Returns order type (e.g. RE).
  • Return delivery & goods receipt back into stock.
  • Watch out: Returned stock not received correctly, inventory wrong.

The returns flow

A return typically starts with a returns order (a special order type), followed by a return delivery (goods received back into stock, often into a returns/blocked stock) and a credit memo (refunding the customer, posting to FI-AR). Each step reverses the corresponding outbound step.

Key elements

  • Returns order type (e.g. RE).
  • Return delivery & goods receipt back into stock.
  • Credit memo to refund the customer.
  • Inspection/disposition of returned goods (with QM).

Why it matters

Returns affect inventory (stock coming back), finance (credits reducing revenue/AR), and often quality (inspecting returned goods). Handling them cleanly ensures accurate stock and financials and good customer experience. Advanced returns management provides richer control for complex return scenarios.

Common pitfalls

  • Returned stock not received correctly, inventory wrong.
  • Credit memo not linked to the return, accounting off.
  • No inspection/disposition of returned goods.

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Check your understanding

  1. Which statement is true of Returns?

    • A. Practice tests simulate the certification exam, in format, difficulty and timing, so you build familiarity…
    • B. The Quality Assurance (QAS) system is where changes built in DEV are tested before they reach production.
    • C. Each step reverses the corresponding outbound step.
    Show answer

    C. Each step reverses the corresponding outbound step.

    Covered in the “The returns flow” section of this lesson.

  2. Which of these also applies to Returns?

    • A. Learning features, not the end-to-end process.
    • B. Handling them cleanly ensures accurate stock and financials and good customer experience.
    • C. Learning transactions in isolation, do the full flow.
    Show answer

    B. Handling them cleanly ensures accurate stock and financials and good customer experience.

    Covered in the “Why it matters” section of this lesson.

  3. Which part of the Learn SAP curriculum covers Returns?

    • A. SAP APIs
    • B. SAP PP
    • C. SAP SD
    Show answer

    C. SAP SD

    This lesson sits in the SAP SD section of the Learn SAP course.

Frequently asked questions

What does the term Returns refer to in SAP?

Returns processing in SD handles goods coming back from customers, return orders, return deliveries, and credit memos, so the reverse flow is managed and accounted for correctly. It is the mirror image of the sales process.

What is another point to note about Returns?

Returns affect inventory (stock coming back), finance (credits reducing revenue/AR), and often quality (inspecting returned goods).

What else is worth knowing about Returns?

A return typically starts with a returns order (a special order type), followed by a return delivery (goods received back into stock, often into a returns/blocked stock) and a credit memo (refunding the customer, posting to FI-AR).

What tends to go wrong with Returns?

Returned stock not received correctly, inventory wrong. Credit memo not linked to the return, accounting off. No inspection/disposition of returned goods.
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