Return Material Authorization (RMA) Business Overview

Ascent ERP Return Material Authorization (RMA) Processing

In a fast-paced warehouse and distribution environment, efficient handling of Customer Returns through a well-coordinated Return Material Authorization, also called Return Merchandise Authorization (RMA) process is critical to business success. It can be a differentiator that helps you maintain great customer service and a highly efficient warehouse inventory, or it can be a source of frustration and confusion for the customer service department, the warehouse operators, and, worst of all, the customers. Ascent ERP has been built with an emphasis on providing easy and flexible ways to streamline this process and leverage your investment in both the Salesforce.com platform and Ascent ERP.

Initiating an RMA

There are several ways to initiate the RMA process, they are not mutually exclusive and can be tailored to the business process your team needs to support. Typically these include;

1. From a Sales Order: If you receive a call or an email from a customer, it is easy for a customer service representative to find that order, talk to the customer about which items had an issue, and with a simple process, create both the RMA lines to be returned, and a Case to manage the returns process. 
2. From a Case: Often customer inquiries and problems start with a Case that is generated to the customer service department for investigation prior to issuing the RMA. When that happens your team can follow their normal process and at the appropriate time they can add RMA lines to the existing case. They can also add the original order to the case to keep the return synchronized with the original fulfillment order for full visibility.
   
3. Blind RMA: Sometimes items will just show up in the warehouse without any prior notification. If that happens it may be difficult to identify the customer or the original fulfillment order. However a “Blind RMA” can be created that allows the warehouse team to return the item to inventory, send it for inspection or repair or whatever your normal business process might be. 

RMA Types

Each RMA line will have a designated RMA Type that defines how the processing of the line will be managed. Although a default type can be set, all of the types can be available for your team. 

1. Return: A RMA Line of Return Type is used to bring inventory back into the system. If the item is serialized, a blind return will allow any serial number to be entered and will create the Serial Number tracker for the newly entered serial number when the line is processed. 
2. Repair: A RMA Line of Repair Type functions exactly the same as a Return RMA Line, but the line is designated as Repair. Lines that are flagged for Repair are then available for the creation of a Repair Work Order using the highly flexible and configurable Ascent ERP Work Order process. 
   
3. Replacement Order: The Ascent RMA process can automatically create a new replacement Sales Order to handle the fulfillment of a new item to replace the one that the customer is returning. Ascent is able to streamline the processing of this replacement order so that the new order is fulfilled at the same time the previous item is returned. 
4. Replace: Using this type, you can also coordinate the replacement, but it will be on the same Sales Order as the original order. 
5. Reversal: This type is used for reversing an RMA processed in error. 

RMA Processing 

Once an RMA line has been created with the appropriate type and connected to the original and replacement orders if appropriate it is ready for processing. When the warehouse team sees that the item has been received it will be an easy process to find the appropriate RMA Case and process the RMA lines back into inventory. 

If an RMA is expected (not a Blind RMA as described above) there should be paperwork that identifies the original order or case number. Either way, the team will be able to find the RMA Case. Once they do, they will be able to selectively process the lines, either partially or fully completing the pending RMA. 

• Lot Controlled: For items that are lot controlled the system will default to the fulfillment lot (if known) but the team can select to bring the item into a new Lot that can be quarantined for inspection prior to release back into the main inventory. 
  
• Serial Tracking: For expected items that are serialized the Serial Numbers will auto populate during the processing of the line. Blind RMA items that are serialized will allow you to create a new Serial Number Tracker for that item.

RMA Financials

Using Ascent ERP with the Ascent Financial Platform allows full financial tracking of returns activity this includes the ability to create reversing journals on the original Sales Order or to create RMA journals based business rules specific to the returns process. 

Once an RMA is processed, Ascent ERP provides an easy way to convert that processed line to a customer credit memo for application against a future invoice. 

Repair Work Orders

Once the RMA has been processed, a single button click will take all processed repair lines and create an Ascent Repair Work Order that can be configured for a designated location. Once necessary repairs are completed the Work Order process can move the item back to the general stocking location. 

Important Notes

1. Ascent Solutions has designed our RMA process to work seamlessly with your investment in Salesforce Service Cloud, which we recommend as the best way to implement flexible and efficient customer service processes. However, for companies who have not yet made that investment we are able to deploy an alternative configuration that leverages an Ascent Returns object that can be used to manage the process of the RMA instead of a standard Salesforce Case. 
2. Ascent also supports a similar and robust process for Return To Vendor Scenarios (RTV) that can link these returns to the original Purchase Order process.