10.06. Sales Returns

A customer may return, partially or fully, stockable products, based on an existing shipment and following pre-established conditions. This chapter describes how transactions resulting from a customer return are registered. Return transactions are the opposite of sales transactions, keeping all the details of the sold products (lot, series number, quantity, price, etc.).

The Returns or RMA (Return Materials Authorization) are governed by a set of rules, generically known as RMA Policy. These need to be met in order to allow the return transaction to be registered. This set of guidelines is made up of:

1. RMA categories - are used to to split RMA transactions by category. Multiple RMA categories may be defined. For example:

   • Vendor RMA - broken;

   • Vendor RMA - qualitatively inadequate;

   • Customer RMA - broken;

   • Customer RMA - unsatisfactory (according to Law)

   • etc.

2. Return Policies - are used to set the maximum time after the delivery date allowed for product returns. You can set a generic number of days, applicable to all products, as well as specific periods defined for products or product categories. These need to be defined according to the present Law.

The workflow of the documents that make up an RMA is the following:

1. Request (optional) - it is recommended to work with requests in order to highlight the actions undertaken by service departments and employees responsible with return transactions and obtain a qualitative analysis of the return process. Starting with version 13.07, a new distinct window has been added to highlight the RMA requests. This can be accessed via the path Quote-to-Invoice -> Returns -> Request-RMA. For further information on how to configure and work with requests, see Partner Relations.

2. RMA Order - the document equivalent to a sales order, but signifying a return. Has the same utility in the quality-value control of the operation, which will be displayed in the Open Orders report as long as they are not completely returned and totally invoiced.

3. Customer Returns - the document is equivalent to a shipment, but represents a return, despite the fact that the quantity is positive! In all the stock reports, this document represent a stock increasing transaction. From an accounting perspective, the effect is that to reverse the original posting, by registering the sums with a changed sign. The values are identical to those of the original shipment. The Document Base Type for this document is Material Delivery with the Return Transaction checkbox selected.

4. Customer Return Invoice - the document equivalent to a customer invoice, signifying a return. This can be allocated to customer invoices (+/-). The document base type is AR Credit Memo.

RMA Categories

Are used to to split RMA transactions by category. Multiple RMA categories may be defined. The RMA Category window, located in the Quote-to-Invoice -> Returns menu is used to define RMA Categories.

Return Policies

Are used to set the maximum time after the delivery date allowed for product returns. The Return Policy window, located in Quote-to-Invoice -> Returns menu, is used to define return policies which can then be linked to a business partner, in the Business Partner window, Customer tab. The following fields are available:

• Default - the return policy will be used by default for all the business partners for which no return policy was chosen in the Customer tab;

• TimeFrame (in days) - maximum number of days since delivery allowed for returns, applicable for all products;

• Return Policy Line tab - contains records with specific numbers of days, applicable for product categories or products.

RMA Requests

Once the RMA incident occurs, it is recommended you enter an RMA request into the system. An RMA Request is a request that has the RMA checkbox selected. Fill in the following:

• • Request Type and Category - elements specific to requests;

  • Summary - descrierea problemei reclamate de client;

  • The Return Representative and the Action;

  • Business Partner and B.P. Contact;

  • Project - generic for RMA/service type actions;

  • Order: the original customer order;

  • Shipment/Receipt: the original one;

  • Original Customer Invoice - optional;

  • Product - optional - only indicated if the return is for a single product, otherwise, the products will be filled in at step 4 in the Customer RMA document.

Details in Requests.

Based on a RMA Request an order can be generated by pressing the Generate RMA button. To generate the RMA order, the Order and Shipment fields must be completed on the request with the shipment and order for which the return was entered. To prevent operating mistakes, the button will o longer be available once a RMA Order has been generated.

RMA Order

Any return process starts with at least on RMA Order. This is a control document for both the return and the reversed invoice. The Customer RMA window, located in the Quote-to-Invoice -> Returns menu, is used to enter a RMA order. On the RMA order you need to fill in the following fieds:

• • Target Doc Type = "NIR RMA";

  • RMA Category - select a category from the list;

  • Orig Sales Order - select the source order for the returned product;

  • Orig Shipment - select the source shipment for the returned product;

  • RMA Date - date of the return order;

  • Business Partner - the customer;

  • Warehouse - the warehouse the product will be returned to.

In the RMA Line tab, enter the product line from the order and shipment and the quantity that will be returned. For source orders with a large number of lines, and for which the return is done for most of the products, the Copy Lines to RMA process can be used. The process copies all the lines from the source sales order to the RMA order (v15.07).

The return order does not have any accounting consequences. On the RMA order you cannot enter a quantity bigger than the quantity on the shipment (delivered).

Customer Returns

The return cancels out the initial accounting effect of the shipment and reloads stock The Customer Return window located in the Quote-to-Invoice -> Returns menu is used to enter customer returns. On the return you need to fill in the following fieds:

• Customer Return window:

  • Document Type = "MM Customer Return"

  • RMA - select the RMA Order

• Return Line tab

  • RMA Line - select the rma line representing the returned product

  • Quantity - the product quantity that will be returned. Initially will have the same value as the quantity one the associated RMA order line. Cannot enter a value greater than the quantity on the RMA order line

Return accounting consequence : 357-371, with minus.

After completing the return, the return invoice for the customer can be generated using the Generate Invoices process or window based on the RMA Order. Details Operating Invoices.

The generated return invoice will have the initial invoice date and document number completed automatically in the description field (v14.07)

Invoice accounting consequence : 411-707,4427 : with minus.

The warehouse offloading document will be automatically generated with the associated quantity (MatchShip) : 607-357, with minus.