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dpaul
December 11, 2018
Solved

What is best way to implement RMA process for inventory items to be repaired and returned when we have some customers who take a debit and some who do not?

  • December 11, 2018
  • 3 replies
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Almost all parts that would be returned on RMA would be repaired and returned to customers. Some customers take a debit and some do not when they return parts. We need to track how many RMAs we have in process. We also need to create similar process for sending back and tracking the units to our vendor to be repaired. We typically do not take a debit when we send to our vendor since they are always coming back for after repair. We would liek to have as few processes as possible to do both. Thanks
Best answer by Rustler

There is no RMA function in QB, so anything you do is a work around

There is no connection between customers and vendors for things like this either

If you use the inventory item on the credit memo, it returns to stock
then if you use that same item on a vendor credit, it is removed from stock
when it comes back, enter a bill and apply the vendor credit - that returns it to stock

the hard part of the above is you really need to use the average cost of the item as the credit amount.  When it was returned to stock, that average cost was pulled out of COGS and assigned to the item, so you need it go back to COGS when you get the item to the customer, and that means a sale (see below)

If when you put it on the vendor credit you create a sales order for that customer with that item on it at a zero sales price, when you get it back create an invoice from the sales order (zero dollar) and get it to the customer

I add RMA to the sales order number so there is no confusion as to why it is zero dollar.

3 replies

Rustler
RustlerAnswer
December 11, 2018

There is no RMA function in QB, so anything you do is a work around

There is no connection between customers and vendors for things like this either

If you use the inventory item on the credit memo, it returns to stock
then if you use that same item on a vendor credit, it is removed from stock
when it comes back, enter a bill and apply the vendor credit - that returns it to stock

the hard part of the above is you really need to use the average cost of the item as the credit amount.  When it was returned to stock, that average cost was pulled out of COGS and assigned to the item, so you need it go back to COGS when you get the item to the customer, and that means a sale (see below)

If when you put it on the vendor credit you create a sales order for that customer with that item on it at a zero sales price, when you get it back create an invoice from the sales order (zero dollar) and get it to the customer

I add RMA to the sales order number so there is no confusion as to why it is zero dollar.

    D
    dpaulAuthor
    December 11, 2018
    Very much appreciated Rustler. On customer end of the process -what about creating a new item (lets say by adding RMA prefix) when creating credit memo and using the cost and price from original sales order and then rebilling using this part? I assume we would run into similar issue going forward with average cost of this new part over time but it would also allow us to easily report/see RMA units.  Thanks again for your help. Will also visit your site.
    S
    specialtygraphx
    January 4, 2019

    We track RMA's using the "Estimates" transaction.  We modified the form template to make a "Return Authorization" document.  Since it's using the Estimate function, it is not recording any sales or credits.  

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    mac999
    February 18, 2020

    Just came across a very simple work-around on this... Not sure if this completely works for you, dpaul, but for those of you wanting to have some way to track an RMA like you can track a sales order:  Just create your credit memo, but before you save it, click the "Mark as Pending" button near the print button.  This makes the credit memo non-posting and this even prints out on your template like a watermark that it is pending.  You may want to create a new template to use just for this, but after the material is received back to you, just click that button again ("Mark as Final") and it becomes a posting credit memo again.  

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