3491839 - Delivery Block set for document type CBAR not working

Delivery block is assigned for the document type CBAR but the Order is not being blocked for delivery. The delivery is being created automatically. 

SAP S/4HANA Cloud Public Edition

1. Using the SSCUI 'Configure Sales Document Type' (ID 102495), set a delivery block for the document type CBAR
2. Open the app Create Sales Orders (VA01) and create a new Sales Order for type CBAR
3. After saving, click on 'Display Document Flow'
4. A Returns Delivery was automatically created

For document type CBAR, the 'Delivery Block' can't prevent the Returns Delivery creation, the 'Block Reason' will be copied to the Returns Delivery and block the Post Goods Receipt.
Therefore, this is the standard system behavior.

To prevent the Returns Delivery automatic creation, it depends on what channel is being used to create the Returns Order:

Via app Create Sales Orders (VA01):
Set the the approval to 'Item to be revised'. The approval field is located in the 'Returns' tab of the Order.

Via app Manage Customer Returns - version 2 > create:
After fulfilling the order, click on the button 'Save' instead of 'Save and Release'. This will automatically set the approval field to 'Item to be revised'.

Via api:
Set item level field 'RetsMgmtProcessingBlock' to 'X'.

CBAR, delivery block, document type, standard return, returns delivery, Configure Sales Document Type, 102495, customer return, automatic delivery, immediate delivery, VA01, Manage Customer Returns Version 2, create sales orders , KBA , SD-SLS-RE-2CL , Returns (Public Cloud) , Problem