3612954 - Unable to create subcontracting Purchase Order using NB2 document type

• Error message: "Returns not possible for subcontracting items"
• Issue occurs when trying to create a return PO using document type NB2 and item category L (Subcontracting)

SAP S/4HANA Cloud Public Edition

1. Go to "Create Purchase Order" App (Transaction Code: ME21N) or Fiori tile "Create Purchase Order - Advanced".
2. Enter Document Type NB2 as the document type (for Return PO).
3. Enter Vendor Information: Input the subcontractor’s vendor number.
4. Enter Item Data: Material: Enter a valid material that is usually processed via subcontracting. Quantity: Enter the required quantity (e.g., 10 PCs). Item Category: Set as L (Subcontracting). Plant and Storage Location: Enter valid values.
5. Enter Delivery Date and Pricing Conditions: Fill in delivery date. Enter net price and ensure conditions are filled as normal.
6. Enter Components for Subcontracting: Click on the Item Detail view → Material Data tab → go to Components (or explode BOM). Add components that are sent to subcontractor.
7. Save or Try to Proceed: When you attempt to proceed/save or check conditions, the system shows an error or information message such as: "Returns not possible for subcontracting items".

The functionality to set the 'Returns Item' indicator for a Purchase Order (PO) item with item category 'L' (Subcontracting) is not supported in the standard SAP system.

When the return flag is selected on a subcontracting item, it implies that the entire quantity of material provided to the subcontractor (components) would be automatically returned. This behavior is not feasible within the standard subcontracting process, as the subcontracting components are meant to be consumed during manufacturing, not returned in full.

As per SAP Note/KBA 2398029, the system correctly raises error message ME548 – "Returns not possible for subcontracting items" when both the return indicator and item category 'L' are set on the same PO item. This is a hard-coded validation in standard SAP to prevent an unsupported and illogical transaction scenario.

To process returns in a subcontracting scenario, alternative approaches such as handling returns through movement types or separate return POs should be considered, depending on the business requirement.

Refer to: KBA 2398029 - ME548 Returns not possible for subcontracting items

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