A returns order is created. The returned goods must be received into the plant for inspection, so the processing employee selects follow-up activity Receive into Plant. The system creates a returns delivery. If a warehouse number is assigned to the combination of plant and storage location, the goods receipt cannot be posted until all warehouse management activities have been completed. A transfer order is therefore created for the inbound delivery. This results in the returned goods being moved from the interim storage bin to the specified destination storage bin. The system determines these from Customizing.

Once the transfer order is confirmed, the goods receipt is posted, and the system updates the stock available at the destination storage bin.

An example of a transfer order created for a returns delivery to execute the relevant goods movements is shown in the figure below:

The warehouse inspector examines the returned goods and assigns the appropriate inspection code, splitting the items where necessary.

The warehouse manager selects and confirms the appropriate follow-up activity for each item and its splits. When logistical follow-up is confirmed, the system creates a new transfer order to record the stock splits resulting from inspection in the warehouse management system. This transfer order is automatically confirmed as it does not result in any physical movement of stock.

An example of a transfer order created to record stock splits resulting from inspection is shown in the figure below:

Based on the selected follow-up activities, the system creates the relevant goods movements or outbound deliveries for each inspection item and inspection split item. Another transfer order is created to execute the associated goods movements. The system ensures that the correct stock is moved from the correct storage locations.