A Return Material Authorization (RMA) or Sales Return is the process of a seller accepting a purchased item back from the consumer. In turn, the customer receives credit, cash refund or a replacement. Some of the common reasons for return include receiving damaged/expired products, wrong delivery, fraudulent orders etc. Show
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Workflow of a Sales ReturnThe various stages of processing a sales return in Zoho Inventory. Qualify Items for ReturnBefore you begin with sales return, your inventory items must be eligible for return. A sales return can only be initiated for items that you qualify as returnable. Insight: Service items and items with only purchase information cannot be returned.
Insight: If the switch is not turned on, the item will be considered non-returnable and you won’t be able to raise a sales return for it.
Bulk ActionYou can also mark your existing items as returnable in one go. To do so:
Create Sales ReturnScenario: Let us consider a most common business scenario where you initiate a sale, ship the products and get paid for it. After receiving the product, the customer returns it due to unforeseen reasons. To handle this in Zoho Inventory: 1. Create a Sales ReturnInsight: You cannot create sales returns for orders that are drop shipped or manually fulfilled.
Insight: The quantity specified in the Credit-Only field will not be taken into stock.
2. Receive Items in the Sales ReturnA sales return is raised only as a proof of items being returned. The stock(physical stock) of the returned item increases only when you receive it in your warehouse. To record a receive:
Insight: To enable tracking in packages, purchase receives and sales return receipts, go to Settings > Preferences > Items. Under Advanced Inventory Tracking, choose Track in packages, purchase receives and return receipts option.
Insight: If you have specified credit-only goods in the sales return, you will not be able to receive it as it will not be taken into stock. 3. Create Credit NoteTo provide a refund or credit for the returned items, you have to create a credit note. Creating a credit note will also increase the accounting stock of the underlying items. To create a credit note:
Insight: Learn how you can handle the return of batch tracked or serial number tracked items here. 4. Record a Refund or Apply Credits to InvoicesA sales return process is not usually complete without a refund. To record a refund:
If the customer is a regular buyer, then instead of giving cash refunds you can provide credits. These credits can be applied to their pending or future invoices. To apply credits to invoices:
Insight: A credit note created for a customer can only be applied to the invoices created for the same customer. To learn how you can handle more of such cases of sales return in Zoho Inventory, visit our FAQ section. Import Credit NotesIf you already have a list of credits for your customers, you can import them into Zoho Inventory in CSV, TSV or XLS format. To know the format of the import, i.e. the columns and data to be included in the import file, you can download the sample import file which we’ll be looking at in the steps below.
Export Credit NotesTo download the credit note details to your system:
Is Return Merchandise Authorization?What is a return merchandise authorization (RMA)? An RMA (return merchandise authorization) is a numbered authorization provided by a mail-order or e-commerce merchant to permit the return of a product. Most businesses have a policy concerning returns.
Which document is prepared authorizing the customer to receive credit for the merchandise returned?A credit memo is a document used to authorize the customer to receive credit for the merchandise returned.
How do I do a return authorization?In order to get a return merchandise authorization, customers typically need to provide proof of purchase, such as a receipt or order confirmation. Once the customer is issued an RMA, they can return the item according to your instructions.
What is a return authorization number?A return authorization number is a number that a seller issues to a buyer to authorize their product return. Merchants use the return authorization number to track returns and issue credit or refunds to the right customer.
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