Return Material Authorization (RMA) in Order Management

The following topics will be discussed in this article:

1. Overview of RMA
2. Creating a New Return (RMA with Credit)
3. Creating a Return using the Copy Function (RMA with Credit)
4. Creating a New Return (RMA no Credit)
5. Creating a New Return (RMA Credit Only)
6. RMA Receipt
7. Viewing the status of RMA
8. Close RMA
   
   
   Pre-requisites:

1. Return Order Categories and Transaction Types have been defined.
2. Items exist in the Item Master with the attribute Returnable enabled.
3. Those items must exist on a Price List.
4. Customers exist in the Customer Master.
5. Return reasons have been defined.
6. Discounts have been defined.

7. Salespersons have been defined.

1. Overview
Order Management allows the customers to return the goods to you. OM also enables you to authorize the return of your sales orders as well as sales made by other dealers or suppliers, as long as the items are part of your item master and price list. You can authorize returns for replacement that returns with or without credit.

RMA can be created in two different ways in Oracle:

• Create a New Return which will create the RMA from scratch
• Copy an original order into an order with an RMA Order Type

R2i supports four different RMA Order Types, each with a different Order Cycle:

• RMA with Credit is used when the customer returns the physical product and also receives credit as a result of the return.
  This type applies for:
  • Defective Product
  • Customer does not like the product
  • Product does not meet the customer’s expectations

• RMA no Credit is used when the customer will return the product but will not be receiving a credit as a result of the return.
  These returns would be for:
  • Evaluation Orders
  • Samples
  • Other orders where the customer was not originally charged for the product.

• RMA Credit Only is used when the customer will receive a credit, but the physical return of the product is not required.
  • These credits are generally used by software companies when the customer destroys the CD or disk and erases the software from their machine, but no physical thing to return.

• RMA with Credit and Approval is used in the same manner as an RMA with Credit but this order cycle includes an approval process that requires someone to approve the RMA before it is booked. In order for an order/return or order/return line approval workflow to work correctly the profile option OM: Notification Approver must have a value.

2. Creating a New Return (RMA with Credit)

Select:	Order Management responsibility
Navigate to:	Orders, Returns > Order Organizer or Orders, Returns > Sales Orders
Select:	New Order button if using the Order Organizer

Customer:	Enter Customer Name (Customer Number will default in).
Customer Number:	Alternatively, enter Customer Number and the Customer Name will default in.
Order Type:	RMA Order with Credit
Customer PO:	Enter a Customer PO number if the order type you selected requires it.
Date Ordered:	The Current Date will default in as the Order Date. You may change this date or accept the current date.
Customer Contact:	Enter a Customer contact (optional).
Order Number:	Oracle will assign the RMA number as soon as the information is saved if automatic numbering is enabled.
Price List:	Select a price list from the list of values
Ship To:	Enter the customer’s ship-to address from the list of values or accept the default. (Not required for Returns)
Salesperson:	Enter the Salesperson
Status:	The initial entry status for an RMA is Entered. After Booking the RMA status will changed to Booked.
Currency:	Select the currency for the RMA from the list of values or accept the default.
Bill To:	Enter the customer’s bill-to address from the list of values or accept the default.

Order Information – Others

Payment Terms:	Payment Terms are user-definable and must be setup in advance. (Setup>Orders>Payment Terms). Select from the list of values or accept the default. (Not required for Returns)
Sales Channel:	Sales Channels are user-definable and must be setup in advance (Order Management Quick Codes). Select a Sales Channel from the list of values or accept the default.
Warehouse:	Select a Warehouse (inventory organization) from which Returns will be received.
Shipping Method:	Not used for Returns
Line Set:	Not used for Returns
Freight Terms:
FOB:	Defaults (In order, from Ship-To, Bill-To, Customer, Order Type, or Price List)
Shipment Priority:	Defaults from Order Type
Shipping Instruct:	Shipping instructions are printed on the pick slip. Since this is a return do not use this field.
Packing Instructions:	Packing instructions are printed on the pack slip. Since this is a return do not use this field.
Tax Handling:	Select from the following:Exempt – Indicates that this order is exempt for a normally taxable customer site and/or item. If you select exempt you must enter a reason for exemption. Require – Indicates that this order is taxable for a normally non- taxable customer and/or item. Standard – Indicates that taxation should be based on existing exemption rules. If the customer has a tax exemption defined, Order Management displays any certificate number and reason for the exemption in the corresponding fields.
Tax Exempt Number:	If you choose Exempt in the Tax Handling field then select an existing certificate number for the ship-to customer, or enter a new, unapproved exemption certificate number. If you chose Standard in the Tax Handling field, an existing exemption rule may display a certificate number in this field. Unapproved exemption certificate numbers can be approved using the Tax Exemptions window.
Exempt Reason:	If you chose Exempt in the Tax Handling field then select an exemption reason. If you chose Standard in the Tax Handling field, an existing exemption rule may display an exemption reason in this field. You can define tax exemption reasons using the Receivables Quickcodes window.
Payment Type:
Amount:	Optional unless the payment type selected requires it.
Check Number:	Optional unless the payment type selected requires it.
Credit Card Type:	Optional unless the payment type selected requires it.
Credit Card Num:	Optional unless the payment type selected requires it.
Card Holder:	Optional unless the payment type selected requires it.
Card Expiration Date:	Optional unless the payment type selected requires it.
Approval Code:	Optional unless the payment type selected requires it.
Order Source:	If the RMA is copied from an existing order/return ‘Copy’ will appear in this field.
Order Source Rule:	If the RMA is copied from an existing order/return the original order/return number will appear in this field.

Line Items Tab – Returns

Line:	This field will automatically be populated.
Ordered Item:	Enter the Ordered Item from the list of values.
Qty:	Enter the quantity to be returned.
Return Reason:	Select a defined reason from the list of values.
Line Type:	Select a line type. A line type may default depending on the transaction type setup. Select a line type from the list of values if you wish to change the defaulted value.
Reference:	Select the appropriate Reference Type. Use the Reference Type if you want to refer to a specific Invoice, Purchase Order, or Sales Order. These references must be for transactions originally placed in Oracle. You have the option of leaving them blank, in which case the customer’s credit will be placed On Account when it interfaces to Accounts Receivable. On Account credit memos may be applied to invoices at a future time.
Order:	If referencing a Sales Order then enter the Sales Order number.
Line:	If referencing a Sales Order enter the appropriate line number from the Sales Order referenced. Note: If creating the RMA using the copy function the information in the copied Sales Order will automatically populate in this field.
Invoice:	If you enter Sales Order or Invoice in the Reference field, then you have the option of selecting a specific invoice in the Invoice field. This would allow for a Credit Memo to be created and directly applied to this invoice. Leaving this field blank will yield an On Account credit memo in Receivables.
Invoice Line:	If referencing an Invoice, enter the appropriate line number from the Invoice referenced.
Credit Invoice:
Item Revision:

Line Items Tab – Main

UOM:	The UOM will default in based on the item selected to be returned.
Unit Selling Price:	The price defaults in from the invoice, purchase order, sales order, or invoice if selected in the reference field, otherwise, it will default from the price list selected on the Return.

3. Creating a Return using the Copy Function (RMA with Credit)

Select:	Order Management responsibility
Navigate to:	Orders, Returns > Order Organizer
Query:	Query an existing order or return to copy from.
Select:	Actions button in the Order Organizer window
Select:	Copy

Quick Copy Tab:

Select:	Create New Order
Change Order Type To:	Select RMA Order with Credit
New Order Number:	Enter a new RMA number for RMA order types that require manual numbering.

Copy Header Tab

To exclude child entities (lines, sales credits, notes, descriptive flex, and holds) or to re-price, navigate to the Copy Header,Copy Line, and Pricing Options tabs and deselect options as desired.

Note:

The OM: Credit Card Privileges profile option determines whether you are able to copy customer credit card information.

Copy Lines Tab

Change Line Type To:	Select RMA Line with Credit
Return Reason Code:	Select a return reason from the list of values.
Include Lines:	Includes the lines from the original order/return.
Include Descriptive Flex:	Includes the descriptive flexfield values from the original order/return.
Include Attachments:	Includes the attachments from the original order/return.
Include Fully Cancelled Lines:	Determine whether to include/exclude fully cancelled lines when using the copy feature. If fully cancelled lines are included, the lines are copied over with the original ordered quantity.

A common use of the Copy function is in the case where a customer wants to return all or part of a previous sales order. You may use the Copy function to create the return based directly on the information contained in the original sales order.

Another advantage of using the Copy function to create your RMAs is in the case where the customer will be receiving a credit for the return, Oracle can use the original sales order number to identify the original invoice in Accounts Receivable, and apply the credit directly against the original invoice.

When creating returns for configurations, copy the model line. Select the specific order lines and copy them as return lines to return individual components of a PTO configuration.

Pricing Tab

At Original Selling Price:	Select this option if you want the return to contain the original selling price in the originating order or return. Retaining the original pricing will retain all discounts and charges and the Calculate Price Flag is set to ‘Partial’ for return lines.
Re-price as of this date:	If you choose to re-price, specify the pricing date. Manual discounts and charges are removed and automatic discounts and charges are recalculated.
Select:	OK button. This will perform the copy and close the window.

If any validation errors occur, message(s) in the Messages window are displayed and indicates that an order was successfully created.

Select:

Continue button. The newly copied order is available through Order Organizer.

To update and book the RMA, select the RMA from Today’s Orders in the Order Organizer window.

Select:

Open button.

• The original sales order from which this RMA was created is identified both at the header level (in the Order Source field of the Others tab) and at the line level (in the Order Source field of the Main tab).

You have the option to manually make changes to this RMA before booking it. For example, the customer may only want to return part of one line or not return another line at all.

You may optionally update the Receive From and Credit To Addresses using the Addresses Tab in the Line Items Tab.

Under the Actions button, there are several other options:

Promotions/Pricing Attributes – You may optionally apply Discounts to each lines at this time (assuming that Discounts have been defined and you have the appropriate discounting privileges). A Discount will decrease the amount of the credit the customer will receive.

Return Lot/Serial Numbers – You can enter lot and serial numbers for the return.

Sales Credits – If the Sales Credits button was checked in preparing the Copy then Sales Credits for the return will be derived from the original order. You may change the Sales Credits for the return if you wish by using this option.

To book the order, select the Book Order button.

4. Creating a New Return (RMA no Credit)

Select:	Order Management responsibility
Navigate to:	Orders, Returns > Order Organizer or Orders, Returns > Sales Orders
Select:	New Order button if using the Order Organizer

The process for creating an RMA no Credit is identical to creating an RMA with Credit. You have the option to create the RMA using the New Return option or the Copy option. The only difference between the two processes is that the Invoice Interface does not exist in the workflow for an Order Type of RMA no Credit. As a result, no credit memo will be created for this RMA.

Note:

Oracle does not provide a seeded workflow process to handle RMAs with Receipt no Credit; therefore, the R2i control environment provides a custom process to fulfill this need. For further information on this custom process refer to OM Transaction Types Setup and R2i OM Order Line Workflow Package.

5. Creating a New Return (RMA Credit Only)

Select:	Order Management responsibility
Navigate to:	Orders, Returns > Order Organizer or Orders, Returns > Sales Orders
Select:	New Order button if using the Order Organizer

The process for creating an RMA Credit Only is identical to creating an RMA with Credit. You have the option to create the RMA using the New Return option or the Copy option. The only difference between the two processes is that the Fulfillment activity does not exist in the workflow for an Order Type of RMA no Credit. As a result, no physical return of product is required.

6. RMA Receipt

Select:	Purchasing Super User R2i responsibility
Navigate to:	Receiving > Receipts
Select:	The Inventory Organization for the Receipt (not Global).
Select:	OK button.

Select:	The Customer tab in the Find Expected Receipts window.
RMA Num:	Optionally enter a specific RMA number.
Line Num:	Optionally enter a specific line number on a specific RMA. Note: Can only enter a line number if you have enter a number in the RMA Num field.
Line Type:	This field will populate automatically if you enter a value in RMA Num. If you do not enter a value in RMA Num you can optionally select a line type.
Customer:	Optionally select a customer from the LOV. If you enter a value in RMA Num, this field will populate automatically.
Customer Num:	Optionally select a customer number from the LOV. If you enter a value in RMA Num, this field will populate automatically.
Customer Item Num:	Optionally select a customer item number from the LOV.

• You can further search for expected receipts using the Item, Date Ranges, and Shipments tabs.

Select:

Find button.

All the receipt lines that meet the search criteria are displayed in the Receiving Transaction form.

Only lines with a “Destination Type” of “Inventory” can be delivered to Inventory.

Select:	Checkbox next to receipt line to be delivered to inventory.
Quantity:	Enter the “Quantity” to be delivered.
Subinventory:	Enter the subinventory where the items will be delivered to.

Save. Once the transaction is saved a receipt number is assigned.

For more information on Receiving Transactions in Purchasing refer to related R2i Purchasing Training documentation.

7. Viewing the Status of an RMA

The Sales Orders window displays the RMA header status in the Main tab of the Order Information tabbed region. The RMA line status is displayed in the Main tab of the Line Items tabbed region.

The Workflow Status option on the Sales Order window Tools menu launches the workflow status page. The window shows all the activities an RMA header or line has completed and the corresponding results in tabular format.

Note:

In order to view workflow status from the Order Organizer the menu attached to the responsibility in use must have two functions assigned to it: Monitor Activities List and Workflow Status. For more information see the appropriate AOL documentation.

8. Close the RMA

Closing RMAs that are complete enhances performance, since many programs, windows and report queries retrieve open RMAs only.

An RMA line is closed automatically once it has completed its corresponding workflow successfully. An RMA header is closed at the end of the month once all the lines have been closed.