Managing Return Material Authorization (RMA)

Managing Return Material Authorization (RMA)

Order Management provides sophisticated tracking of your return material authorizations (RMA). Returns from a customer occur for a variety of reasons including damage, shipment error, or sampling. Return material processing functionality enables you to manage customer expectations while controlling inventory receipts and customer credit processing.

These are the different types of senarios of Return Material Authorization (RMA) type which may exist :

1. RMA with Credit Only : Your company issues a credit without the customer returning the product.
2. RMA with Repair : Your customer returns a damaged product. Your company repairs and returns the product to the customer.
3. RMA with Replacement : Your customer returns a product and your company sends a replacement product rather than issuing a credit.
4. RMA With Receipt and Credit : Customer returns a product and receives credit.
5. Returned Item Fails Inspection (Exception case) :Rarely happen , here your customer returns product, Company inspects product and rejects it. Company scraps product or sends product back to Customer. In this case, you have the option of performing an RMA transaction of type:
   • RMA with Repair,
   • RMA with Replacement,
   • RMA with Receipt and Credit.

Below are setup features that have a significant impact on RMA processing.

• Return Order Type/Line type for return order
• Document Sequence
• Item Attribute in Master Item
• Price List for return order
• Return reason codes

Process Flow:

• Create RMA Order using sales order window in Order Management
• Book RMA Order
• Receipt the RMA using receipts window in Purchasing
• Check the on hand quantity of the item in Inventory to verify that correct quantity was received
• Generate credit memo in Accounts Receivable (If Applicable)
• View the credit memo in order management
• Check the shipped and fulfilled quantity on the RMA line

Below is accounting entry get created in this process

• During receipt of RMA in Receiving Inventory

  • Receiving Inventory Dr.
  • COGS Cr.

• During receipt into Subinventory

  • Material Dr.
  • Receiving Inventory Cr.

• During generation of Credit Memo

  • Revenue a/c Dr.
  • Receivables a/c Cr.

Below is the tables used in this process

• OE_ORDER_HEADERS_ALL
• OE_ORDER_LINES_ALL
• RCV_SHIPMENT_HEADERS
• RCV_SHIPMENT_LINES
• RCV_TRANSACTIONS
• RA_INTERFACE_LINES
• RA_CUSTOMER_TRX_LINES_ALL
• RA_CUSTOMER_TRX_ALL