RMA (Return Merchandise Authorization)

Overview

What is an RMA?

• Document which items are being returned and why
• Track when items are received at the warehouse
• Record the condition of returned items
• Decide whether items can be restocked
• Calculate refund amounts
• Maintain a complete audit trail

Key Concepts

RMA Number

RMA-20251115-0003 

Understanding RMA Statuses

Status Flow Diagram

What You Can Do at Each Status

Return Reasons Reference

Choosing the Right Reason

• Our fault (reasons 1, 2, 7): Customer typically gets full refund, we pay return shipping
• Customer's choice (reasons 3, 4): May have restocking fees, customer pays return shipping
• Quality concerns (reasons 5, 6): Investigate further, may affect vendor relationships

Condition Assessment Guide

Inspection Tips

1. Check packaging first - damaged boxes often mean damaged contents
2. Test functionality when possible - especially electronics
3. Look for missing parts - check against product specs
4. Note serial numbers - important for warranty and fraud prevention
5. Take photos of any damage for documentation
6. Be consistent - similar items should get similar assessments

Customer Service Workflows

Creating a New RMA

1. Verify the order - Look up the customer's order
2. Check return eligibility - Confirm items are within return window
3. Select items for return - Choose which items the customer wants to return
4. Enter quantities - How many of each item (must be ≤ original quantity ordered)
5. Select return reason - Choose the most appropriate reason for each item
6. Add notes - Document any relevant details from the customer
7. Save as Draft - RMA is created but not yet authorized

• You can only return items from one order per RMA
• At least one line item is required
• Quantity to return cannot exceed quantity originally ordered

Authorizing an RMA

1. Review the RMA - Verify all items and quantities are correct
2. Confirm with customer - Make sure they understand the process
3. Click "Authorize" - Status changes from Draft to Authorized
4. Provide RMA number - Give the customer the RMA number (e.g., RMA-20251115-0003)
5. Share return instructions - Tell them where to ship and any packaging requirements

• The RMA cannot be edited (items, quantities, reasons)
• Customer should write the RMA number on the package
• Warehouse is notified to expect the return

Recording Tracking Information

1. Open the RMA - Find by RMA number or customer name
2. Update tracking number field - Enter the carrier tracking number
3. Save changes - This helps warehouse know when to expect the package

Cancelling an RMA

1. Open the RMA - Find the RMA to cancel
2. Click "Cancel" - Confirm the cancellation
3. Add cancellation reason in notes - Document why it was cancelled
4. Notify customer - Confirm the return has been cancelled

Warehouse Staff Workflows

Receiving Returned Items

1. Locate the RMA - Find by RMA number on the package
2. Verify contents - Check which items are in the package
3. Enter quantities received - For each line item, enter how many arrived
4. Click "Receive" - Status changes to Received (or stays Received if additional shipment)

• First shipment: Status changes from Authorized → Received
• Additional shipments: Status stays Received, quantities add up
• System tracks cumulative total received

• RMA has 100 items expected
• First package: 60 items → qty_received = 60
• Second package: 40 items → qty_received = 100 (total)

Inspecting Returned Items

1. Open the RMA - Find the RMA in Received status
2. For each line item:
   • Assess condition - Good, Damaged, Unusable, or Not Received
   • Enter quantity - How many items in this condition
   • Decide restocking - Can these items be sold again?
   • Select warehouse - If restocking, which warehouse gets them
   • Add notes - Any details about the inspection
   • Enter refund amount - Calculate refund for these items
3. Save inspection - Record is created

• Some items are in good condition, others damaged
• Items arrive in multiple shipments with different conditions

• 100 widgets returned
• 80 are in Good condition → Create inspection: Good, qty 80, restockable: Yes
• 20 are Damaged → Create inspection: Damaged, qty 20, restockable: No

Processing an RMA

• All items received (qty_received matches for each line item)
• All items inspected (inspection quantities = qty_received)
• All restockable items have a warehouse assigned
• Refund amounts entered

1. Review the RMA - Verify all inspections are complete
2. Click "Process" - System will validate everything
3. Confirm processing - This is a final action and cannot be undone

1. Inventory Updates - Restockable items are added back to inventory
2. Order Updates - Original order quantities are adjusted
3. Audit Trail - Complete record is preserved
4. Status Change - RMA moves to Processed (final state)

• Any line item has qty_received = 0
• Inspection quantities don't match qty_received
• Restockable items are missing warehouse assignment

Common Scenarios

Scenario 1: Simple Full Return

1. CS creates RMA with 10 widgets, reason: No Longer Needed
2. CS authorizes RMA, gives customer RMA number
3. Customer ships all 10 back
4. Warehouse receives 10, inspects all as Good
5. Warehouse processes RMA
6. 10 widgets back in inventory, refund ready

Scenario 2: Partial Return

1. CS creates RMA with qty_returned = 20
2. Process continues normally for just those 20 items
3. The other 30 items remain on the original order

Scenario 3: Multiple Shipment Return

1. CS creates and authorizes RMA for all items
2. First package arrives with 60% of items → Receive
3. Warehouse inspects and records those items
4. Second package arrives with remaining 40% → Receive again
5. Warehouse inspects remaining items
6. Once all inspected, process the RMA

Scenario 4: Mixed Condition Return

1. Receive all 20 items
2. Inspect: 15 Good (restockable), 5 Damaged (not restockable)
3. Create two inspection records:
   • Good: qty 15, restockable: Yes, refund: full price
   • Damaged: qty 5, restockable: No, refund: partial or none
4. Process RMA
5. Only 15 items go back to inventory

Scenario 5: Customer Changes Mind Before Shipping

1. CS opens the authorized RMA
2. CS clicks Cancel
3. RMA status changes to Cancelled
4. No further action needed

Scenario 6: Item Not Received

1. Receive the 8 items that arrived
2. Create inspection for 8 items with appropriate condition
3. Create inspection for 2 items as "Not Received"
4. Contact customer about missing items
5. Either wait for additional shipment or process with what was received

Troubleshooting & FAQs

Common Errors

• RMA has already been authorized. Create a new RMA if changes are needed.

• RMA might still be in Draft (needs authorization) or already Processed/Cancelled.

• Check that inspection quantities equal qty_received for every line item.

• You're trying to receive more items than the customer said they would return.

• Edit the inspection to select a warehouse before processing.

Frequently Asked Questions

Quick Reference Card

For Customer Service

For Warehouse

Status Quick Guide

• Draft = Created, awaiting approval
• Authorized = Approved, waiting for shipment
• Received = Items arrived, being inspected
• Processed = Complete (final)
• Cancelled = Cancelled (final)