Return Authorization (RMA) Forms

A return authorization form, also known as a return materials authorization (RMA), is a record of expected customer returns.

The return authorization holds information about the items you expect a customer to return, such as the item number or vendor item number and the quantity being returned. The authorization also tracks the price of items being returned which determines the amount to be credited or refunded to the customer.

Credit or Refund?

Whether the return process results in a credit or a refund is dependent on three things:

1. Which return authorization form is selected in the Custom Form field on the authorization.

   Standard forms available include the following:

   • Standard Return Authorization -Credit – A return using this form generates a credit memo for the returned item.

     The credit memo can later either be applied to an account balance or refunded to the customer.

   • Standard Return Authorization -Cash – A return using this form generates a refund for the returned item.

     A cash form return authorization cannot later be processed as a credit memo.

2. Your setting for the Refund in Advance of Return preference.

3. Whether the Advanced Receiving feature is enabled.

   • If you have enabled the Advanced Receiving feature, you must credit a return before you can refund a return.

     • First, a credit is created from the return authorization in the authorized amount.

     • Next, from the credit, a refund is created, also in the authorized amount.

     For more information, read Receiving a Purchase Orders With Advanced Receiving.

   • If you do not use the Advanced Receiving feature, you can create a refund directly from an authorization without creating a credit memo first.

   Whether Advanced Receiving is enabled or not, you can always enter standalone credit memos that record credit on a customer account that can be applied toward their account balance. For more information about this type of customer credit memo, read Customer Credit Memos.

As you enter information to process the return, the return authorization keeps track of the status of return while accounting and inventory records are updated. This way, you can monitor accurate data to know which steps are completed and what to expect next.

For example, when the warehouse manager gets the item from the customer and marks the return authorization received, the accounting department sees the return authorization in their queue to be credited.

To begin the customer return process, issue the authorization. NetSuite offers two ways to issue a return authorization.

• Entering a Standalone Return Authorization.

  This creates a return authorization that is not linked to a sale.

• Entering a Linked Return Authorization.

  This creates a return authorization from a cash sale or invoice that automatically shows the items from the original sale and is linked to the original sale.

General Notices