Processing an RMA (Return Merchandise Authorization)
Overview
An RMA is a return of Merchandise FROM a customer TO your receiving department. The process is handled in the system much like a purchase order. The RMA process is a multi-step process that begins with entering the return. Once the return is entered into the system, it is then approved so that it can be sent to the customer. After it is approved, the return is printed and sent off to the customer.
When the customer has filled the return, they inform the company and send the items. At this point, the company has to receive the return. When the outstanding return is received, the quantity of items received are confirmed or adjusted with the quantity stated on the original return and inventory is updated accordingly. Then the return is ready to be paid through the Payment Processing Method.
The links below detail each step in Processing an RMA.
- Entering an RMA
- Entering RMA Items
- Printing an RMA
- Approving an RMA
- Receiving a Return
Entering an RMA
Click the New button to start a new RMA. This will bring you to the New RMA Screen. You will notice that many of the fields on the screen are already filled in with default data that was shipped with the system. Go down the list and enter the information for your specific RMA, changing or removing the default data as necessary. This screen is where the basic information is entered. The actual items being returned will be entered in the RMA Detail section.
The RMA Number field will always say <new> when entering a new RMA. This field is the ID number for the database for that particular RMA and cannot be changed or edited.
The date the RMA is being made is entered in the RMA Date field. The date must be entered as mm/dd/yyyy.
The Transaction Type ID field is automatically selected to be RMA. There is no need to change this field.
Enter the date the RMA is anticipated to be canceled (if applicable) in the Cancel Date field. This field would be used in the instance that an RMA is not received or shipped by a particular date. Typically, it will be left blank. The date must be entered as mm/dd/yyyy.
Customer ID is where the you would select the customer that this RMA is for. Click the box at the end of the field to view a list of customers entered in the system and select the customer that this RMA is for.
The Ship To and Ship For fields are automatically populated based on information entered for the customer during the Customer Setup process.
In the Warehouse ID field, select the name of the Warehouse from the drop down menu where this RMA will be shipped to. Once you select the warehouse from the list, the shipping fields (name, address, etc.), will be automatically filled in. The check box that says Ship to Warehouse will automatically be checked once the warehouse is selected.
Enter the date the RMA should be received by in the RMA Date Requested field. The date must be entered as mm/dd/yyyy.
The Order Number field is used if the RMA being entered is for a specific order in the system. The actual order number in the system would be filled in here as a cross-reference to the company's order.
Enter the date the RMA is due in the Due Date field. This is the date that the RMA would need to be received by before it is canceled. The date must be entered as mm/dd/yyyy.
Tax Exempt ID Number is your company's tax ID number. It is automatically completed based on information entered during the Company Setup process.
XID, Rate is the Currency Exchange ID and current Currency Exchange Rate. These fields are automatically populated based on the currency type table and the currency ID that the Customer and Company uses.
Disc %, Amt refers to the discount percentage applied to this RMA, and the amount of the discount on this RMA. If there is a discount being applied, enter the percentage in the Disc % field and enter the amount of the discount in the Amt field.
The Taxable field is automatically filled in after the RMA Detail section has been completed and the Subtotal has been calculated. The Taxable field is the amount that tax will be charged on, if the RMA is taxable.
Customer Invoice field is where you can enter the invoice number received from the customer for this purchased order. If you do not have it at the time of placing the RMA, you can leave the field blank or you can go back and enter that number after the RMA is received.
In the Ordered By field, enter the name (or id, depending on what your company is using) of the person who is placing the order.
Enter the date the RMA is anticipated to be shipped in the Ship Date field. If you do not know the anticipated ship date, leave this field blank and the system will fill in the current date. If the customer informs you at a later date when the purchase will ship, you can return to this screen to edit this date. The date must be entered as mm/dd/yyyy.
In the Ship Via field, select the shipping method from the drop down list. This selects how the items will be shipped to you.
Terms is the payment terms that your company has with the customer. This field should automatically be filled in based on the terms entered during the Customer setup and would not need to be edited.
The next section is the RMA Details section that lists the items being ordered on this RMA. See the section on RMA: Entering Items for more information on entering specific items into an RMA.
The remaining fields on the RMA are detailed as follows:
The Subtotal field is automatically filled in when the RMA Detail section is completed. It will display the subtotal of all the items listed on the RMA.
Check the Tax Freight box if the freight charge is taxable under the company's state law.
In the Shipping field, enter the dollar amount of the freight charge for the purchase. If it is not known when entering the RMA the amount of the freight, it can be left blank or entered before the RMA is posted.
In the Handling field, enter the dollar amount of the handling charge for the purchase. If it is not known when entering the RMA the amount of the handling charge, it can be left blank or entered before the RMA is posted.
In the Tax field, select the Tax that will be applied to this RMA.
The Tax Percent field is automatically filled in based on the tax selected in the previous field. It will display the tax percentage of the total.
The Tax Amount field is automatically filled in when the Purchase Detail screen is completed. It will display the tax on the order.
The Total field will update automatically and reflect the totals from the Purchase Detail Screen once that screen has been entered.
When all the information has been entered for the RMA, and you are ready to book the RMA into the system, click the "Book Purchase" button. This will save the RMA and enter it into the system for processing.
Entering RMA Items
Now that the basic information has been entered for the RMA, the next step is to enter the specific items that are to be returned. Click the New option in the RMA Detail section to bring up a blank screen and enter information for the first item to be returned.
The Return Line Number field is automatically completed by the system. There is no need to edit this field.
The Item ID field is where you select the item the customer is returning. Click the box at the end of the line to bring up the list of items from that customer. Select the item you wish to add to the RMA from the list by clicking the Select button. The item will appear in the Item ID field.
The Customer Item ID field is automatically completed if there is an additional or different name or reference that the customer uses for that particular item other then what your company normally uses. If there is no secondary name or reference, this field is left blank.
The Description field is automatically completed based on the description entered about the item after the Item ID is selected.
Enter the item Serial Number or item Lot Number in the Serial Number field if your company has serialized inventory. If your company does not use serial numbers on the inventory, you can leave this field blank.
The Warehouse / Bin fields are optional fields. They are used If you would like to have this particular item sent to a different warehouse then the rest of the items on the RMA. The Warehouse Bin indicates what warehouse bin the item will go into when it is received at the warehouse. If you do not wish to use this option, you can leave these fields blank.
Enter the quantity of the item the customer is returning in the Return Qty field.
The UOM field will be automatically filled in when the item ID is selected in the above field.
The item weight in the Item Weight field is automatically filled in based on information provided during the initial setup of the inventory item.
The Total Weight field will be automatically calculated based on the number of items ordered and the total weight.
The Item Cost will be automatically filled in based on the cost of the item.
The Item Unit Price will be automatically completed based on the unit price entered during the item setup.
If the item is taxable, check the Taxable box.
The Total field will be automatically calculated based on the quantity of the items ordered and the item price.
The GL Account will be automatically filled in based on the GL Account selected for that customer during the Customer Setup process. If this RMA should be allocated to a different account, then select the account from the drop down list.
If there is a Project ID associated with this RMA, enter that in the Project ID field.
The next few fields, Received, Received Date, Receiving Number, Tracking Number and Received Qty are not dealt with at this time. They are referred to in the Receiving step of RMA Processing.
When you are finished entering the information about this item, click the OK button at the bottom of the screen to return to the RMA Screen. If you need to add additional items, click the New button and follow the steps as before to enter additional items.
When you are finished with the RMA Screen, and have entered all the information for that Return, click the Book Return button at the bottom of the screen. You MUST Post the Return for it to properly enter the system. If you need to edit or change a Return after it has been posted, then click the Unbook Return button at the bottom of the Return. Be sure to click Book Return once the changes have been made so that the updated RMA reenters the system.
Printing an RMA
Once an RMA has been entered, it is ready for printing so that it can be sent to the customer for fulfillment.
To print an RMA, from the Main Menu click on the Accounts Receivable button then select Enter and View RMA. This will bring you to the list of open RMAs in the system. Click the printer icon next to the RMA you wish to print. This will open the RMA in a new browser window.
From the browser window, you can print it, email it or save it to a file for later retrieval. You will see a preview of the RMA in the browser window. The browser window will display the first page of an RMA. If there is more than one page to the RMA, scroll down to see the remaining pages.
Approving an RMA
Before issuing an RMA to the customer for them to return the goods, and in order for it to appear in the Receiving Screen, the RMA needs to be approved. The following steps describe how to approve an RMA.
From the Main Menu click on the Accounts Receivable button then select Approve RMA. This will bring you to the Approve RMA. A list of all the RMA's in the system pending approval is displayed with a box next to each item.
To approve an RMA, select the RMA you wish to approve by clicking on the check box next to them. After you have selected the RMA, click Approve Selected RMA at the top of the screen.
If you want to approve all the RMA's at once, click the Approve All RMA button at the top of the screen to approve all of the pending RMA's with one click.
When you are finished at this screen, click OK to return to the main menu.
Receiving a Return
Receiving a return is the process of confirming that the items received from the customer reflect the amount of items originally stated on the return.
To receive a return, from the main screen click on Accounts Receivable then click on RMA then Receive RMA. This will bring you to the RMA Receiving screen. A list of posted and approved returns are displayed that are waiting to be received.
Look for the return that is ready to be received. Determine if the amount of items actually received are equivalent to the amount of items that were returned.
If the amount of items received is identical to the amount of items returned, press the Receive All button. This receives ALL the items on the return, notes the return as received, and inventory is now updated accordingly.
Click OK to exit that screen and return to the main menu.
If the amount of items is different then press the Receive button. This will bring you to a screen where the line item of the selected return is displayed. Click the pencil next to the item to wish to receive. This brings up another screen where you can manually adjust the quantities received.
The fields displayed reflect the basic information for the return. For the purposes of receiving, you will only be looking at the bottom of the form.
Click the Received box to indicate that part of the return was received.
In the Received Date field, enter the date that the items were received.
In the Receiving Number field, enter a receiving number, if applicable.
Enter the Tracking Number if available.
Enter the actual quantity of items received in the Received Quantity field for that particular item. When you are finished entering the updated quantities and receiving information, click OK
Repeat the above steps for each individual line item that you want to receive. When you are finished, press the OK button.
The return will be Split into two returns. The return with the partially received items is now marked as received and it is complete.
A new return is created with the next available RMA number and will contain the balance of the items from that return. This return will need to go through the approve and receive process again when the goods arrive.
