Return Merchandise Authorization (RMA) Overview

The RMA feature is used to authorize and control product returns from customers. The stages of RMA are:

  • Details of the return are captured in Return Merchandise Entry (IN67).

  • A document to control the return is printed by RMA Receiving Document Print (IN69).

  • Upon receipt of the returned goods, they are examined and a decision is made as to what the next step should be.

  • It may be appropriate to update the Reason for the return and the Status of the return (both of which are stored in the RMA header) at this time. The Outstanding RMA Report (IN68) can be restricted to report a specific reason or status.

  • If the goods are simply being returned or are damaged and the customer wants a credit note, then the RMA is turned into a credit note in IN41 or RS41.

  • If the goods are being repaired or replaced at no charge, then the RMA is turned into an order in OE30; a picking slip will be created to control shipment of the goods back to the customer.

In all cases, when the RMA is turned into an order/invoice or credit note, the appropriate TAT code needs to be assigned to ensure Demand, Sales Statistics and Inventory Quantities are updated properly. For no-charge replacements, the selling price needs to be set to zero or the discount needs to be set to 100%.

IN67 is used to create new RMAs or modify, review or delete existing RMAs. The RMA header identifies the customer making the return and the reason for the return. When the product code being returned is entered in the detail folder, the program searches Invoice History to confirm that the product was sold to the customer returning the goods. Details from all invoices for this customer/product combination are displayed (most recent invoices first) in a list box. When the operator selects the appropriate invoice line, the quantity, pricing information and cost are brought forward on to the RMA, thereby ensuring if a credit note is created from the RMA then the price and cost on the credit note will match what was on the original invoice. Note: If invoice history does not show that the customer purchased that product, there is an option to still proceed with the RMA creation.

Once an RMA passes through the invoicing cycle (either as an invoiced no-charge order, a direct bill or a credit note), then the "RMA Quantity Available for Return" field is updated in the invoice history detail record; this field lets IN67 know how much of that particular invoice detail line has already been returned on a previous RMA.

Purge Converted RMA's (IN88) is used to purge RMA's that have been converted into credit notes, invoices or sales orders.

 
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