The SAP ERP system has had tools for supporting reverse logistics processes, such as returns orders in SD or returns purchase orders in MM, for a long time. They allow for the registration of returns transactions in the system, the receipt of returned materials from customers or the issue of returned materials to the suppliers and, of course, posting of appropriate credit memos. At present, these tools are not sufficient to meet the increasingly complex requirements of reverse logistics. New functions – advanced returns management 1 and 2 (LO-ARM 1 & 2) available with enhancement packages EHP4 and EHP6 significantly increase the system capabilities.
Introduction to advanced returns management
The advanced returns management is a functionality built on the basis of the existing features of SD and MM modules as the new processes include already known documents, such as returns orders, returns purchase orders or returns deliveries. However, the new functionality contains also a number of new tools that guarantee an unprecedented accuracy in mapping of returns processes; full integration of the activities performed in the process; automatic creation of key documents and excellent end-2-end traceability of the entire ...
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