1. FAQ - RMA Mgmt Module
1.1. How do I Create an RMA to Refund the Customer their Money rather than Fixing and Returning the Product?

  1. You need to process as an RMA without a return shipment and move the goods to finished inventory.  This will debit inventory and credit COGS.  Also, it will debit AR and credit returns.
  2. Write a manual check to the customer (setup as vendor) and post to a GL clearing account.  This will credit cash and debit the clearing account.
  3. You now need to do a manual packing slip and invoice posted to the clearing account to debit AR and credit the clearing account for the dollar value.  The clearing account will net to 0.
  4. Finally – do an AR offset to removed the AR credit and debit for the customer.

 

1.2. How Do I Handle the Shipping Cost on a Returned Item?

How do I handle the Shipping Cost that the Customer Paid to Return the Board???  

We sold 100 boards @ 62.00 each.  (No Shipping Cost on Invoice)

Problem:    Customer returned one of the boards and took credit for the cost of the board which was $62.00 + $7.49 for the shipping cost that the customer paid to return the board (which was not part of the original Invoice) = $69.49

Resolution:   Create a Standard RMA for the Cost of the board $62.00 and since the shipping was not part of the invoice you will NOT be able to included that cost on the RMA, so you will then need to Create a General Credit Memo for the shipping cost of $7.49 and then use that CM in the AR Offset module to apply against the Invoice.  


1.3. How Does Processing an RMA with $$ Amount affect the GL?
Q.  -  How does Processing an RMA with $$ amounts affect the GL?
 
A. - The user may enter full price for both the return and re-work.  The Prints Screens attached below <<RMA_With_$$$.docx>> displays the basic procedure followed for processing an RMA through the system where both of the items have a $$ associated with them and how it affects the GL accounts.
1.4. How Does Processing an RMA with no $$ amount affect the GL?

Q.  -  How does Processing an RMA with $$ amounts affect the GL?

A. -A. -  The user may enter zero for both the return and re-work.  The Prints Screens attached below <<RMA_Without_$$$.docx>> displays the basic procedure followed for processing an RMA through the system where both of the items DO NOT have $$ associated with them and how it affects the GL accounts.

1.5. Why is FGI credited and WIP debited when an RMA is received?
Q -   Why is FGI credited and WIP debited when an RMA is received?
 
A -  When an RMA is received, it is first received to inventory,  then issued to the RMA as some kind of credit is issued to the customer, depending on the amount entered in the RMA module. The Credit Memo is automatically created, accounting may be notified automatically that it was created, and they approve the transaction.   Additionally, WIP is debited, because the material is NOT consigned, but valued inventory.
1.6. How does an RMA impact MRP?
 
How does an RMA impact MRP?

If the user enters a scheduled delivery for both the returning item(s) (a minus quantity, those coming back to the user) and the reship items (a positive quantity, returning the items to the customer) on the RMA.   MRP will display a demand for a Rework Firm Order for their replacements, to satisfy the return to customer requirements based off the scheduled delivery date entered in the RMA.   
 
Note:  When the RMA Receiver is created the Work Order due dates are generated automatically based on the date the RMA was created.  This date may need to be reviewed and adjusted to match the RMA reshipment date. MRP will NOT instruct you to reschedule a rework firm work order, so it is important to make sure these two dates match.  
 
 
 
RMA's will NOT drive MRP: 
  • if there are no scheduled delivery dates entered
  •  if the Rework Work Order that was generated has been completely scrapped out
  • if product moved into FGI was accidentally shipped against another order
  • if the Rework Work Order build qty was changed to 0 and the Work Order closed.
 
If the RMA only has the return to User, (a minus quantity),  but not a return to the customer(a positive quantity),  then the product will become available for other orders, if it makes it to FGI.  If the user scraps it in this case, there is NO impact to MRP, as there is no requirement to replace the items.   If there are other requirements for the same item, however, then MRP will use the rework order as a source for additional demands.

There would be no reason to create an RMA to ship only, without the return to our user. We would call that a Sales Order. Which would be visible anywhere. 
 
The Word attachment <<RMA Orders Affect MRP.docx>> will display how MRP works if the RMA's are properly processed through the system.