3675873 - No Logistical Follow-Up Activity Triggered in Advanced Returns Management When Refund Control = “Decide Later” or “No Refund” in SAP S/4HANA Cloud Public Edition

• When performing an inspection using the Enter Inspection Results – From Warehouse app in Advanced Returns Management (ARM), no consecutive logistical follow-up activity (e.g., transfer to free stock, scrapping, or return to supplier) is created for return orders where the refund control is set to Decide Later (R) or No Refund (N).

• Even after the refund clerk finalizes the refund decision in the Manage Customer Returns (V2) app, the logistics status of the inspection remains Not Executed.

SAP S/4HANA Cloud Public Edition

1. Create a Return Order:
2. Go to Manage Customer Returns app.
3. Create a new return order with Refund Control = “Decide Later”.
4. Perform Inspection from Warehouse:
   • Open the Enter Inspection Result from Warehouse app.
   • Select the relevant delivery.
5. Perform the quality inspection and choose a follow-up activity (e.g., “Send to Supplier” or “Scrap”).
6. Check Return Order Overview:
   • Open Return Overview for the same return order.
   • Observe that no logistical follow-up activity is displayed or triggered.
7. Compare with Working Scenario:
   • Repeat the same steps with a new return order where Refund Control = “Create Credit Memo”.
   • Note that the logistical follow-up activity is successfully created and visible in the overview.

• In Advanced Returns Management, the logistical and financial refund processes are intentionally decoupled. When refund control is set to Decide Later or No Refund, the system defers material valuation until the refund decision is finalized in Manage Customer Returns (V2).
• Because valuation is postponed, no logistical follow-up activity is triggered during inspection, and none is created automatically after the refund is processed. This design ensures clear separation between the operational inspection phase and the financial refund phase.

• This behavior is working as designed and cannot be changed through configuration in the public cloud.
• If a logistical movement (e.g., scrap, transfer) is still required after refund finalization, it must be executed manually using a suitable stock transfer or goods movement transaction.
• To enable automatic logistical follow-up immediately after inspection, use refund controls that perform immediate valuation:
  • Create Credit Memo or Create Credit Memo Request.

• Refer to: Enter Inspection Results – From Warehouse
• Refer to: BKP - Simplified Customer Returns Process with Automatic Product Inspection Community Answer
• Refer to: SAP S/4HANA Advanced Returns Management (ARM): A Basic Guide Community Answer
• Refer to: Logistical Follow-Up Activities Help Portals

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