RMA – Return Material Authorizations in R12.2

Description:

Order Management allows the customers to return the goods to you. OM also enables you to authorize the return of your sales orders as well as sales made by other dealers or suppliers, as long as the items are part of your item master and price list. You can authorize returns for replacement that returns with or without credit.

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.

Here let us perform this RMA in 2 possible ways:

Step 1: Create a Item. (RMA Item here)

Responsibility: Inventory

NAV: Items> Master Items

Give the List price in Purchasing tab

Step 2: Create Transaction type in OM

Responsibility: Order Management Super User

NAV: Setup > Transaction types > Define

Create Return Line type transaction and change the below fields as given

Order Category       :  Return

Transaction type Code:  LINE

Save and Validate Workflow

Assign the Line transaction type to the Mixed transaction type as below.

Query your Mixed Transaction type and click on Assign Line flows.

Add your Line type by giving Process name and start date.

Process name: Line Flow – Return for Credit with Receipt

Give OK, save and Validate workflow

Step 3: On hand Quantity

Make sure that the Item has enough quantity (100 here) in the Sub inventory. (ware house).

Step 4: Create Sales Order

Responsibility: Order management super user

NAV: Orders, Returns > Sales order

Create a Sales Order taking Order type as Mixed for 5 quantities as below. (Tesco_Mixed here)

Book, Pick and Ship the order and make sure that the order line is closed.

Now Check the On hand quantity of the item

You will find 95 here as you have shipped 5 quantities to the customer

Step 5: Creating Returns (RMA)

Now assume that you have returns from your customer for some reason

Query the Actual sales order (1000) and click the Line items as below

Create new line items for the same item, price and change the line type to Return line type.

Let’s assume that we have returns for 3 quantities from 5.

Note the Quantity become negative once you create the line type as return type.

Save and now the status becomes “Awaiting Return” as below. (Means that we have 3 items returned from the customer)

Step 6: Receiving the Returned quantity

Responsibility: Purchasing

NAV: Receiving > Receipts

Go to Customer Tab and give your RMA number (Sales order number)

Click Find

Check the Check box and save. (received to Stores Sub inventory here)

Note that you have received the quantity

Now check the On hand quantity of the Item.

You will find 95 in FGI and the returned 3 in your Stores as below.

3 in Stores sub inventory as you have received the returns to that particular sub inventory.

Check the Line order status for Order (1000) and note that it will be “Returned”

Now run the Work flow Back ground process report as below.

Now Query the Sales order and check the order line status and now it will be as “Closed”

2.RMA from different Sales Order

Step 1: Create Transaction type in OM

Create the Header transaction type as below and make sure that you create the Document sequence number for the transaction type.

Click on Assign Line flows and assign the return line type as below.

Save and validate the workflow.

Step 2: Create Sales order for the same Item used in the above method.(RMA Item)

Select the Order type as Standard as you book the normal sales order for 5 quantity.

Make sure that the Line item is closed (Means the item is shipped to the customer).

Step 3: Copy the sales order with Return transaction type

Go to the above Sales order (606) and Click on “Actions” and “Copy”.

Go to Quick Copy tab and Change the transaction type to “Return type”, No. of copies to 1.

Note that a new sales order has been created with Return Transaction type. (Here 5501)

Now Query the newly created return type Sales order Number. (5501)

Now check the Line item in the order and the quantity will be in Negative sign(-5), which means that the customer has been returned the items.

Line status will be “Entered”.

Note the Returns Tab where we can see the reference sales order number (606) created earlier.

Save the line and the status changes to “Awaiting returns”

Step 4: Receiving the Items

Responsibility: Purchasing

NAV: Receiving > Receipts

Give the RMA number (Sales order no.), check the line item type and find

Receive the returned quantities to the Inventory

Now the status of the Returned sales order (5501) will be closed.

Summary:

A return merchandise authorization (RMA), return authorization (RA) or return goods authorization (RGA) is a part of the process of returning a product to receive a refund, replacement, or repair during the product’s warranty period. Both parties can decide how to deal with it, which could be refund, replacement or repair.

Queries?

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