Introduction
* Please contact Versa Cloud ERP Support if you want to use this feature as this feature is an addon to some subscriptions.
A return merchandise authorization is created when a customer requests to send some purchased products back. Such products need to be received back into inventory. They will either be re-sold, scrapped or repaired. You can create an RMA order in Versa for this purpose. An RMA order is similar to a purchase order where you would enter the products to be returned, the quantity, and the unit price(to be used in refunds if needed).
Setup
For every product that is returned, you need to specify a return reason. Set this up Enterprise Setup and RMA return reasons.
Set up a format qualifier for lotted products because we would need to create new return products as lotted. Do this in Products, Under Setup, Field Qualifiers. See this article on how to set up a qualifier.
In order for a user to create an RMA, he must have the user permission RMA applied to his user account.
Create Order and Create Return Product (if required)
From the main menu, click on Order Entry and select New RMA Order under RMA Orders to start creating a new RMA order. Select the customer who is returning the products and fill out the order header and click on the Assign order number to continue. Choose the facility that you will receive this returned product.
Now you would need to create a line for each product that is being returned. There are 2 ways of receiving a return back. If returned products are not put back into the regular stock, you can create a special return/repair product that is associated with the main product. If the return products are new and can be put back into regular stock, you would just return the product as is. There is no need to create a returned product to receive the returns. You can choose either option when you are creating a new line for the RMA order.
For the purpose of this article, the main product referring to the product a customer bought and is returning. Returned product is the product that we will be receiving into the system as a new product that is associated with the main product.
If you choose to receive returns as a returned product, the new return/repair product is lotted so that you can track individual returned products separately. In order to create a returned product, you must create a new return/repair product first, there is a link to create a new returned product in the form. When creating a new line in RMA, click on the link new repair/returned product to create a new return product or type in the part number of a repair product you already created. Under Part Number, enter the new part number for this returned product we are creating. Type in a description of the new product. Choose a format qualifier that will be used to check against the lot numbers. Click on Create to finishing creating the new return product.
Add Return Product to Order
If the product is to be received as a returned product, after a new returned product is created ( Creating of new return product is only required if you are returning a product for the very first time. For future returns, you can keep using the same return product )l , type in the part number for the new return product in the new Order Line Form. The system will find any sales order with the main product in the Sales Order/Line Item field. Choose the order that the customer is returning against.
If the product is returned as-is, then just enter the part number of the original product. The system will find any sales order with the main product in the Sales Order/Line Item field. Choose the order that the customer is returning against.
Enter the quantity to be returned and the unit price of the item. The price is used to determine the credit or refund you will give to the customer once the products are returned. Choose a return reason which you defined earlier. Check the checkbox Returned Item Required to have the system create a new sales order with the return products on it. This is optional. Needed if the returned products need to be sent back(in a repair case for example), then you would use this sales order to shipping the repaired product back. The price on this sales order is zero unless you want to charge the customer for repairs. Create as many lines as needed for products being returned.
Receive against RMA Order
Once an RMA order is created, you can print the order and send it to the customer. Once the returned products arrived, you would go to Logistics in the main menu and then a new RMA receipt to receive the goods into the system. Make sure you have the correct facility selected at the top of the page as indicated on the RMA order. After completing the receiving. Now you would have stock for the returned products. The value of a returned product received into the system is determined using the cost at the time the original product is sold. Remember the returned product is a different product from the main product you are selling. If the returned products are deemed resalable as full price, you can create a new BOM to build(convert) the returned product into the main product. If the returned product is resalable at a lower price, you can set a new price policy on this product.
Refunds
You can view a list of RMA order from Order Entry menu, and the List under RMA Orders. In order to refund a customer against an RMA, you would need to create a negative invoice(refund invoice) for this customer. Once the invoice is created, there is an option to link a new invoice to an RMA shipment receipt. Choose the receipt you want to refund and the unit price, quantity received are automatically brought in. Once the invoice is created, you can pay the invoice. Since the invoice total is negative, you are not really paying the invoice but rather refunding the customer the positive total of the invoice.
Scrap Return Stock
If returned products are not resalable and you will scrap it later, you can create a new facility in the system as a designated scrap stock holding facility. Return products are received in this facility. At the appropriate time, you can look up the value of the stocks in the scrap facility and to a one-time GL entry to write up such stocks as expenses.
A return merchandise authorization is created when a customer requests to send some purchased products back. Such products need to be received back into inventory. They will either be re-sold, scrapped or repaired. You can create an RMA order in Versa for this purpose. An RMA order is similar to a purchase order where you would enter the products to be returned, the quantity, and the unit price(to be used in refunds if needed).
Setup
For every product that is returned, you need to specify a return reason. Set this up Enterprise Setup and RMA return reasons.
Set up a format qualifier for lotted products because we would need to create new return products as lotted. Do this in Products, Under Setup, Field Qualifiers. See this article on how to set up a qualifier.
In order for a user to create an RMA, he must have the user permission RMA applied to his user account.
Create Order and Create Return Product (if required)
From the main menu, click on Order Entry and select New RMA Order under RMA Orders to start creating a new RMA order. Select the customer who is returning the products and fill out the order header and click on the Assign order number to continue. Choose the facility that you will receive this returned product.
Now you would need to create a line for each product that is being returned. There are 2 ways of receiving a return back. If returned products are not put back into the regular stock, you can create a special return/repair product that is associated with the main product. If the return products are new and can be put back into regular stock, you would just return the product as is. There is no need to create a returned product to receive the returns. You can choose either option when you are creating a new line for the RMA order.
For the purpose of this article, the main product referring to the product a customer bought and is returning. Returned product is the product that we will be receiving into the system as a new product that is associated with the main product.
If you choose to receive returns as a returned product, the new return/repair product is lotted so that you can track individual returned products separately. In order to create a returned product, you must create a new return/repair product first, there is a link to create a new returned product in the form. When creating a new line in RMA, click on the link new repair/returned product to create a new return product or type in the part number of a repair product you already created. Under Part Number, enter the new part number for this returned product we are creating. Type in a description of the new product. Choose a format qualifier that will be used to check against the lot numbers. Click on Create to finishing creating the new return product.
Add Return Product to Order
If the product is to be received as a returned product, after a new returned product is created ( Creating of new return product is only required if you are returning a product for the very first time. For future returns, you can keep using the same return product )l , type in the part number for the new return product in the new Order Line Form. The system will find any sales order with the main product in the Sales Order/Line Item field. Choose the order that the customer is returning against.
If the product is returned as-is, then just enter the part number of the original product. The system will find any sales order with the main product in the Sales Order/Line Item field. Choose the order that the customer is returning against.
Enter the quantity to be returned and the unit price of the item. The price is used to determine the credit or refund you will give to the customer once the products are returned. Choose a return reason which you defined earlier. Check the checkbox Returned Item Required to have the system create a new sales order with the return products on it. This is optional. Needed if the returned products need to be sent back(in a repair case for example), then you would use this sales order to shipping the repaired product back. The price on this sales order is zero unless you want to charge the customer for repairs. Create as many lines as needed for products being returned.
Receive against RMA Order
Once an RMA order is created, you can print the order and send it to the customer. Once the returned products arrived, you would go to Logistics in the main menu and then a new RMA receipt to receive the goods into the system. Make sure you have the correct facility selected at the top of the page as indicated on the RMA order. After completing the receiving. Now you would have stock for the returned products. The value of a returned product received into the system is determined using the cost at the time the original product is sold. Remember the returned product is a different product from the main product you are selling. If the returned products are deemed resalable as full price, you can create a new BOM to build(convert) the returned product into the main product. If the returned product is resalable at a lower price, you can set a new price policy on this product.
Refunds
You can view a list of RMA order from Order Entry menu, and the List under RMA Orders. In order to refund a customer against an RMA, you would need to create a negative invoice(refund invoice) for this customer. Once the invoice is created, there is an option to link a new invoice to an RMA shipment receipt. Choose the receipt you want to refund and the unit price, quantity received are automatically brought in. Once the invoice is created, you can pay the invoice. Since the invoice total is negative, you are not really paying the invoice but rather refunding the customer the positive total of the invoice.
Scrap Return Stock
If returned products are not resalable and you will scrap it later, you can create a new facility in the system as a designated scrap stock holding facility. Return products are received in this facility. At the appropriate time, you can look up the value of the stocks in the scrap facility and to a one-time GL entry to write up such stocks as expenses.
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