SAP MM Return to Vendor Process: Return PO, MIGO 161 and Credit Memo
sap mm return to vendor process
Also searched as
- return delivery to vendor MIGO 161
- sap return purchase order
- movement type 122 return to vendor
- vendor credit memo after return sap
Short answer
There are two standard ways to return goods to a vendor in SAP MM: post a return delivery in MIGO (movement 122, referencing the original material document) or create a return purchase order item and post movement 161. Then settle the money with a credit memo in MIRO or by receiving a replacement.
Applies to: SAP ECC 6.0 and S/4HANA on-premise; standard MM-IM and MM-IV
How to return goods to a vendor
- 1Decide the path. If you only need to reverse a received quantity that was a mistake or rejected, use MIGO > Return Delivery against the original material document (movement 122).
- 2If the return needs its own document with shipping, a return PO is cleaner: in ME21N, create a PO with the item flagged as Returns Item and reference the original PO.
- 3Post the goods issue in MIGO with action Return Delivery, referencing the PO or the material document; stock leaves the plant and the vendor liability reduces.
- 4Print or send a return delivery note from the message output, so the carrier and the vendor have a reference.
- 5For a credit, enter the vendor's credit memo in MIRO (transaction type Credit Memo) referencing the return PO or the original invoice.
- 6For a replacement, create a new PO or a free-of-charge item and receive it normally.
- 7Check stock in MMBE and the PO history in ME23N to verify the return posted.
Movement type 122 versus 161
Movement 122 is a return delivery to the vendor against a prior goods receipt. It reverses the original valuation and reduces PO history for the delivered quantity, so it fits cases where the goods did not meet the receiving criteria and you want to undo the receipt in effect.
Movement 161 is the return delivery against a return PO item. It lets you treat the return as a transaction of its own with a separate PO, which suits returns after the invoice is posted or returns that need their own approval and shipment documents.
The decision is organizational: if your audit wants a separate document trail for returns, use the return PO.
Return PO and the invoice indicator
On a return item, the Returns Item checkbox switches the logic. The item's invoice indicator decides whether a credit memo is expected: if it is checked, the return is invoice relevant and the credit memo clears the amount, if not, SAP expects no financial document.
If a return PO item has a price, the return posts at the price on the PO or the valuation of the original receipt, depending on the set-up. Check the resulting price difference postings if the original price has changed.
Scrap, rework and replacement
When the vendor does not want the goods back, post a scrapping movement (551) instead and claim the cost outside the system. When stock is quality-managed, process the usage decision first so the return only touches the rejected quantity.
A replacement delivery is a normal new receipt. A free-of-charge item on the original PO keeps the vendor's price history clean.
-- Find the receipts you can return against
SELECT MBLNR, MJAHR, ZEILE, BWART, MATNR, MENGE, EBELN, EBELP
FROM MSEG WHERE EBELN = '4500001234' AND BWART IN ('101','122','161')Try it here, free
SAP MIGO Goods Receipt Checklist
Step by step checklist to post a clean goods receipt against a purchase order in MIGO, with critical checks flagged.
Common pitfalls
- !Returning with 122 after the invoice is posted, which causes a price or quantity difference with the invoice.
- !Forgetting the Returns Item flag on the return PO, so the item looks like a new purchase.
- !Not sending a credit memo request to the vendor, leaving the open liability on the vendor account.
- !Returning more than the unconsumed stock; check stock and batch before you post.
How an ERP-grounded AI assistant handles this
Purchasing teams often want to know which receipts for a vendor were returned, and their credit status. Netray's ERPray can run this kind of lookup in plain language against your own SAP system, read-only by default, showing the query it ran and respecting SAP authorizations, with the model served on your own hardware when the system is on-prem. It explains and finds the data; it does not replace configuration decisions or post documents without human approval.
Frequently asked questions
What is MIGO movement type 161?
161 is the return delivery against a return purchase order item. It issues the goods from stock to the vendor and records the return in PO history, so the credit memo can later be matched to it.
When should I use 122 instead?
Use 122 when you are returning goods straight against a prior material document, for example rejecting goods right after receipt. It does not need a separate return PO.
How do I post the vendor credit memo?
In MIRO, choose the Credit Memo transaction, reference the return PO or original document, and post. The credit memo clears the liability and relieves GR/IR for the returned quantity.
Can I return to a vendor without a purchase order?
Yes, with a return delivery without reference, but it is not recommended. Without a PO or material document, there is no price or history reference, so valuation relies on the current material price.
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