Return Material Authorization (RMA) Oracle Order Entry/Shipping lets you accept returns for credit, repair, or replacement

for whatever reason you authorize. Order processing controls allow you to establish the appropriate activity for your different returned goods channels. RMA Cycle . RMA Cycle

Oracle Order Entry/Shipping provides the flexibility of an order cycle for RMAs. You define the activity an RMA follows from initial entry through receiving and the issuing of a credit memo. Oracle Order Entry/Shipping allows you to define as many different RMA order cycles as your business requires.
Approvals and Holds You can implement business practices affecting all RMAs in an order cycle, such as Management Reviews, by including approvals in RMA order cycles. Manage exceptions to RMA processing at any point in an order cycle with holds.

Return Policies You control on an item-by-item basis which items are returnable and which items require inspection before being received into inventory.

Copy Orders Oracle Order Entry/Shipping provides a convenient copy feature to save you time with data entry. Using the Copy Orders window, you can enter RMAs from information already entered on the original order or from other RMAs. Additionally, you can create replacement sales orders from your RMAs.

Return for Credit Accept returns for credit by applying credits to original invoices or creating on account credits. Through Oracle Order Entry/Shipping's integration with Oracle Receivables, application of your revenue rules and credit methods determines when the credit is recognized and issued. Control the currency of a credit by specifying a currency on the RMA. Reflect restocking charges or return fees by creating price adjustments. Returns for credit also adjust sales credits.

Return for Replacement Damaged deliveries or defective items upset your customer, sales organization, and materials management. Your returns for replacement are processed as you issue an RMA for the original order and process a fresh order for the replacement item.

Non-Invoiced Return You can receive returned items from consignment without any accounts receivable activity, as with returned demo or sample items. You return these items to inventory without crediting the customer account or shipping a replacement item. Reference Sources Reference original documents while entering an RMA to speed data entry and ensure accuracy. On any RMA line you can reference the original sales order number, any purchase order number entered on a sales order, or an invoice number. Using a reference source provides default information from the sales order or invoice for the item, quantity, unit, credit price, and sales credits as you enter an RMA line.

RMA Tracking Oracle Order Entry/Shipping captures the reason for returns for subsequent reporting and analysis. All original information tied to the item and the customer, such as original price and quantity, are also tracked. Upon receipt of returning items, specify lot and serial number information in compliance with inventory requirements.

Order Management provides sophisticated tracking of your return material authorizations (RMA). Returns from a customer occur for a variety of reasons including damage, shipment error, or sampling. Return material processing functionality enables you to manage customer expectations while controlling inventory receipts and customer credit processing. These are the different types of senarios of Return Material Authorization (RMA) type which may exist : 1. RMA with Credit Only : Your company issues a credit without the customer returning the product.

2. RMA with Repair : Your customer returns a damaged product. Your company repairs and returns the product to the customer. 3. RMA with Replacement : Your customer returns a product and your company sends a replacement product rather than issuing a credit. 4. RMA With Receipt and Credit : Customer returns a product and receives credit. 5. Returned Item Fails Inspection (Exception case) :Rarely happen , here your customer returns product, Company inspects product and rejects it. Company scraps product or sends product back to Customer. In this case, you have the option of performing an RMA transaction of type: o RMA with Repair, o RMA with Replacement, o RMA with Receipt and Credit. Below are setup features that have a significant impact on RMA processing.

Return Order Type/Line type for return order Document Sequence Item Attribute in Master Item Price List for return order Return reason codes

Process Flow:

Create RMA Order using sales order window in Order Management Book RMA Order Receipt the RMA using receipts window in Purchasing Check the on hand quantity of the item in Inventory to verify that correct quantity was received Generate credit memo in Accounts Receivable (If Applicable) View the credit memo in order management Check the shipped and fulfilled quantity on the RMA line

Below is accounting entry get created in this process

During receipt of RMA in Receiving Inventory o Receiving Inventory Dr. o COGS Cr. During receipt into Subinventory o Material Dr. o Receiving Inventory Cr. During generation of Credit Memo o Revenue a/c Dr. o Receivables a/c Cr.

Below is the tables used in this process

OE_ORDER_HEADERS_ALL OE_ORDER_LINES_ALL RCV_SHIPMENT_HEADERS RCV_SHIPMENT_LINES RCV_TRANSACTIONS RA_INTERFACE_LINES RA_CUSTOMER_TRX_LINES_ALL RA_CUSTOMER_TRX_ALL