Process a Sales Return

Overview

When a customer is returning goods, a Return Order (RMA) will need to be created to handle the receipt of goods and create a credit memo.   

You can create the RMA by copying data from an existing Sales Invoice or you can create an RMA manually.

Enter a Sales Return from a Sales Invoice

Open the App Launcher. Search for Sales Invoices.

Click on the Sales Invoice you will be copying data from and then click Create RMA button to create a Sales Return. 

All of the information (including Cust PO No.) will copy to the RMA.  Adjust header and lines as needed through the Edit button.

Enter a Sales Return Manually

If you want to enter a Sales Return manually, follow the following steps:

Open the App Launcher. Search for Sales Orders.

Click on New.

1. Enter details of the Customer. 

2. Put a check in the Return Order checkbox.

3. Enter the Item.

4. Enter the Quantity as a negative number.

5. Enter the Unit Price.

6. Enter the Unit Cost. The Unit Cost is used to cost the returned inventory.

7. Click Save to save the changes. 

Create the Return Warehouse Shipment

When the goods have been received from the customer, select the Create Shipment button on the RMA to create a return Warehouse Shipment. 

Since the Return Order field is checked, a Warehouse Shipment will be created and will return inventory back into stock. 

If the items being returned require a Lot Number, enter the Lot Number by clicking on Enter Shipping Lots or the Enter Lots button.

Then, Post the shipment.  

Posting the return Warehouse Shipment will increase the inventory for the item(s) being returned in the Return bin defined in the warehouse.  

After the goods have been returned to the return bin, you can decide if you want to move the inventory to different bins (damaged, QC, pick, etc) by using a Warehouse Movement journal.   

Create a Credit Memo

After the goods have been returned and received into inventory, a Credit Memo will be created to credit the customer.  From the Warehouse Shipment or the Return Sales Order, click Create Invoice button to create a Credit Memo.  The credit memo will have a negative invoice amount. 

A Sales Invoice will be created with the Credit Memo field checked indicating the document is a credit (negative) invoice.

Post the Credit Memo invoice to create the credit memo.