Discover SAP ARM for Advanced Returns Management

SAP ARM: Efficient Solutions for More Complex Returns Management

Increase your returns management efficiency with SAP ARM (Advanced Returns Management). Leverage integrated automation capabilities to eliminate manual processes and improve transparency to minimize delays and errors. Learn how SAP ARM enables seamless returns management and improves customer satisfaction. 

SAP S/4HANA already includes tools for managing & processing returns as standard. Given increasing requirements, however, these basic solutions are no longer sufficient. SAP has therefore introduced Advanced Returns Management (SAP ARM), which builds on existing SD and MM processes and functions. SAP ARM offers additional tools to seamlessly integrate and manage the entire process, from order creation and inspection management, to credit memo creation via a central control cockpit. This comprehensive solution enables more efficient and transparent returns management.

What Is SAP ARM?

SAP ARM stands for Advanced Returns Management. It supports the bundling of follow-on functions for created returns or purchase orders and their manual or automatic triggering across different modules. This makes managing the entire returns process more efficient and transparent. The central hub is the ARM Cockpit, which displays the current status of the orders and all relevant documents.

SAP ARM can be used to manage both customer and supplier returns. Its comprehensive functionality supports all scenarios.

What Features Does SAP ARM Offer?

SAP ARM offers the following different functions, which are delivered with additional features in SAP ARM:

1) Material Inspection
Warehouse or sales employees can enter inspection results directly in the returns order. In the case of supplier returns, the results can be entered in the transaction "Material inspection" in the warehouse.

2) Logistical Follow-Up Action
Here, you can specify the final place of destination for a returned material, for example, "Transfer to Free Available Stock" or "Transfer to Scrap".

3) Automatic Creation of Follow-Up Documents
After the follow-up action has been triggered, the system automatically creates the corresponding follow-up documents in the background.

4) Returns Refund Determination
The returns order specifies whether a customer will receive a refund and, if so, the type of refund. The refund amount can also be specified here.

5) Overview
The transaction "Returns overview" facilitates the tracking of all steps within the returns process, including all follow-up documents and information concerning the status of the returns.

What does the SAP ARM Process Flow look like?

SAP ARM covers all necessary process steps and provides consistent and transparent support for complex returns scenarios. The end-to-end process includes:

  • Creation of a returns document that refers to a purchase order or sales order
  • Creation of a returns order
  • Creation of a returns purchase order
  • Transport and goods movements to the defined place of destination
  • Inspection and definition of the follow-up action, including goods inspection to check for completeness and damage.
  • Entry of the inspection results directly in the returns document or in a separate step
  • Optional: Refund for customer returns and credit memo request, including credit memo/cash refund for internal returns.

What are the advantages of Implementing SAP ARM?

  • Integrating it within Quality Management (SAP QM) and Purchasing (SAP MM) ensures the smooth processing of returns, especially in the case of complaints and warranty claims.
  • The greater information level of customer service optimizes communication with customers and retailers and improves transparency.
  • Greater transparency over the location, status and progress of returns, including the current processing stage, particularly in an international context, enables more precise control over processes.
  • A stable and continuous returns process reduces unplanned work and ad-hoc activities at different locations.
  • The comprehensive stock overview with appropriate assessment makes the planning and implementation of returns processing considerably easier.
  • Fewer telephone or e-mail queries and the efficient provision of information improve efficiency and reduce costs.


See for yourself how SAP ARM is revolutionizing returns management and ensuring seamless efficiency in the fast-paced world of B2C and B2B. Get started now and stay one step ahead of the competition!