Customer return authorization is one of the key step in customer sales process. This transaction is created in NetSuite, when the customer returns the purchased goods and also provides the track of returned goods details i.e. what items are returned and how much quantity and if required you can track reason for return. Customer Return Authorization is a non posting transaction and which is the source of credit memo or refund to the customer.
Example: From the company's perspective, the internal handling of return-related process is
- Adjusting customer balances
- Updating inventory quantities and values
- Inspecting returned items
- Sending returned items to the vendor for repair
Setting Up Return Authorizations Feature:
Go to Transactions subtab at Setup > Company > Setup Tasks > Enable Features. Check the Return Authorizations box and click Save.
Steps in the customer return process:
1. Return Authorization Forms: Return Authorization is also known as Return Materials Authorization (RMA).
Standard forms are available in return authorization process.
- Standard Return Authorization - Credit : This form generates a credit memo for the return item. The credit memo is applied to account balance (or) refunded to the customer
- Standard Return Authorization - Cash : This form generates a refund for the returned item. A cash form return authorization cannot later be processed as a credit memo.
2. Preferences for Customer Returns: Set preferences for handling customer returns at Setup > Accounting > Preferences > Accounting Preferences > Order Management.
In Order Management tab choose your default return authorization status. Select Pending Approval (or) Pending Receipt.
3. Entering Return Authorization:
- Open the Cash sales (or) Invoice list.
- Go to Transactions > Sales > Enter Cash Sales > List
- Transactions > Sales > Create Invoices > List
- Click View next to a cash sale or invoice.
- Click the Authorize Return button.
- Select status & select the item which item are to be refunded.
- On the billing subtab, the customer's default billing address autofills the Bill To text field. You can change this address as needed.
- Save
4. Approving a Customer Return Authorization:
- In the Return Authorization page select the status pending approval.
- After save the form. In page view mode click the Approve Return button.
- Receive the items from customer.
- In item receipt page verify the items & select which items you want to refund.
- Save the item receipt page.
5. Handling Returned Items:
- When you use the Advanced Receiving feature and receive inventory items returned by customers, you can choose whether the item is restocked in inventory or written off as an expense.
- In Item Receipt page item & Expense tab, Check the box in the Restock column to indicate that the item should be returned to inventory.
- Save.
6. Check the Return Authorization Status:
- Each customer return authorization has a status that reflects where the return is in the receiving and refunding process.
- To see the status of a customer return authorization , go to Transactions > Customers > Issue Return Authorizations > List.
- The status is shown as pending refund. Click the refund button.
- Save.
- The refund amount is credited to customer account.
- Check the customer account balance.
In this Context, NetSuite efficiently manages the customer return process and provides full visibility to both you and your customers. Either a customer service representative, or a customer logging into the Customer Center, can generate Return Management Authorization (RMA) forms and route them for approval so there are no more problems from returns.
