Return Material Authorization

Return Material Authorization

RMA is used whenever the customer is not satisfied with the goods been delivered. In general, there can be 3 possible

1.)    Goods Returned with amount been credited: This is the case whenever the customer is not satisfied with the quality of goods or incorrect or damaged item has been delivered.

2.)    Goods returned but no amount credited: This is the case when along with regular goods the supplier has sent some sample items for marketing purposes.

3.)    Goods not returned but amount been credited: It happens in the case when a defected item (say a software CD with scratches) has been delivered. It is neither required nor advisable to return such items.

There can be other case which are also possible (like giving some other item in lieu of the returned item). It all depends upon the workflow we choose. In here, we’ll take the first case that is the Goods will be returned & amount will be credited back

Create Credit Memo transaction types in Receivables – Navigate to AR responsibility > Setup > Transactions > Transaction Types & give details as shown below

Assign Credit memo Transaction type to Invoice transaction type: In the same form, search for Invoice transaction type which was already created while doing setups for Autoinvoice & assign the Credit memo to it

Define Transaction Type: Navigate to OM responsibility > Setup > Transaction Types > Define & give header & line details as shown below

Now define Header Transaction Type : In the same form, give details as shown below

Click on Assign Line Flows & give details as shown below

In the Process name field, we can define the type of flow that we want to implement (this includes the 3 types which we have discussed & many others).

Define Document Sequence: Navigate to Setup > Documents > Define & give details as shown below

Assign Document sequence to Document Category: Whenever a Transaction type is created, system by default generates a Document category by same name. We need to assign Document sequence to this document category

Navigate to Setup > Documents > Assign

With this the setups for RMA are complete. Now we’ll pick any order which has been delivered to our customers & start the return process

Navigate to Inventory > Items > Master Items & in Order Management tab enable the Returnable attribute

Consider a scenario where the following ordered has to be returned

Navigate to Sales Order form & give details as shown below

Give the order type as the return type

Give line details as shown below

As a standard practice, do not give the return quantity. Click on Returns Tab & give Return reason & Reference as shown below

The quantity will be auto populated

But instead of returning all items, we’ll just return 2 items. So change the quantity to -2 & book the order. Once the order is booked, the line status will change to ‘Awaiting Return’

Now we need to receive the goods in our subinventory. Navigate to Purchasing Responsibility > Receiving > Receipts à In the customer tab give the RMA number (Order number of the return order)

Click on Find

In case you encounter following error

Then navigate to PO Responsibility > Setup > Organization > Receiving Options & give the value for RMA Receipt Routing as shown below

& give location details as shown below

Save the record. It will submit ‘Receiving Transaction Processor’ concurrent program

Check the status of line. If it is not ‘Returned’ then navigate to PO Responsibility > Receiving > Receiving Transactions & search for the RMA number & give subinventory details & save the record

Now go back to the sales order form & check the line status. It will be ‘Returned’

Run the Workflow background program. It will update the Cost Management system. It will also increase the quantity in Inventory

Once the Program completes successfully then again check the status of line. It will be ‘Closed’