In the Order Entry System you have the ability to enter RMA’s (Return Merchandise Authorizations). This gives you the ability to print a different form that specifies it as a Return Authorization. This is simply an option and not a requirement as you can create a Credit from a Firm Order as well. What indicates a Credit is the quantity on the Order is negative.
If you are putting in a new RMA the system will generate the next numeric Order number as usual. Optionally you could create an order Number which would be the original Order Number and RMA at the end as we did in this example. RMA should then be chosen as the Order Type. You can hit spacebar enter or click the Lookup Box to see the drop down list of choices. See the example below.
The screens are broken down into three sections which are referred to as the Heading screen, Detail lines, and the Final screen. Once you have completed the necessary information on the Heading screen you are now ready to select products to be returned on the detail lines of the RMA, press Esc or click Ok to proceed.
As you can see on the next screen the quantity to be returned should always be a negative quantity in order to give the customer credit for returning the merchandise. You will want to verify the Price you are crediting the Customer. When creating a Credit like this you want to also be sure that the Cost on the Order is the Cost that you would like the Product to go back into stock at. You can verify the Cost that it was sold at by clicking on Inquiries and then Customer Sales History, this will show you the Sell and Cost for each time your Customer purchased the selected Product.
The visual queue that it was entered correctly is the quantity will be red when it is negative, see below.
Once you are done selecting items to be returned you can click Ok or press Esc. You can now send the RMA to your Customer. Most companies request that the Customer put the RMA on the Product when they return it so they can easily verify that it was authorized.
Processing the RMA
Once the Product has been returned you will want to put the inventory back in stock and Credit the Customer. From Allocate Inventory select the RMA Number. At the Detail lines you will allocate the line, see below by clicking on the Allocate Line button.
When Allocating a Credit you are putting the inventory back in stock. If you are lot tracking a location and lot number must be assigned to the product. The system will auto generate a lot number using the Order Number and line number as shown below. Alternatively, the original lot can be entered, this will automatically retrieve the lot information from the original product that was shipped
You can now create the invoice by clicking on Create Invoice under Options as seen in the screen below. The Credit invoice will be part of your daily batch of Invoices.
You can change the Invoice Date in the Create Invoice Screen below, you can also put in a negative freight amount if you are giving your Customer credit for freight. Once you click Ok or press Esc the Credit Invoice will be created.
On the final screen of the Invoice creation you have the ability to automatically apply the Credit to one of your Customers open Invoices. When you click Apply Credit Memo under Options the system will prompt you for the Invoice number you would like to apply it to. If you choose to do this the Credit will be automatically applied when the Credit is updated. This is typically used when the credit is canceling an entire Invoice, and in that case it is more of an internal credit versus one you mail to the Customer to take at a later date.
