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Define Return Refund Code in SAP

Updated Jun 19, 2022

In this SAP SD (Sales Distribution)tutorial, the SAP Users will learn how to define Return Refund Code in SAP. This step-by-step tutorial explains all the steps to create a return refund code with proper screenshots.

What is Return Refund Code?

The returns refund code in SAP SD is the pricing parameter that is used for determining the standard pricing function. A user can configure the returns refund codes, for example, to represent the percentage deduction from the net price.

How to Define Return Refund Code in SAP?

Please follow the procedure mentioned below to define return refund code in your SAP system:

Enter t-code SPRO in the SAP command field and press Enter to execute the transaction code.


On the next screen click the SAP Reference IMG button to proceed to the next steps.

SAP Reference IMG

Now navigate to the following SAP IMG path:

SPRO > SAP Reference IMG > Sales and Distribution > Sales > Advanced Returns Management > Define Returns Refund Code

IMG path

Next on the Change View "Return Refund Code": Overview screen you will see all the previously defined return refund codes in your SAP system.

Previous Refund Code

Next, click the New Entries button to define a new return refund code

New Enteries

Now on the next screen enter the following details for the new return refund code:

  • Ref. Code: Enter a code to represent the new return refund code.
  • Refund Code Description: Enter a short description for the new return refund code.


Once all the details have been entered click the Save button to save the new return refund code.


Now select your Customization Request id and press Enter to go to the next screen.


Next, the message Data was saved will be displayed at the bottom of your screen.

Data was saved

You have successfully defined the new return refund code 05 on your SAP system as shown in the screenshot below.

New Return Refund Code