Vendor RMA

Vendor Return Merchandise Authorization (Vendor RMA) enables businesses to return defective, excess, or incorrect goods to vendors while maintaining accurate inventory and financial tracking.

The Vendor RMA module manages the complete return lifecycle — from initiating a return against a vendor bill to shipping items back, updating warehouse inventory, and posting vendor credits.

Creating a Vendor RMA

When you are creating a Vendor RMA, begin by entering the header-level information, such as the bill number in the Receipt field (if applicable), RMA type, Return Inventory Store and shipping information. Once the basics are set, you can proceed to add item(s) to be returned to the RMA.

Vendor RMA Header Fields

Section	Field	Description
Main	Receipt*	Allows entry or selection of the vendor bill reference for linked RMAs.
Main	Date	Specifies the Vendor RMA transaction date.
Main	Return Type*	Defines the return category such as warehouse return.
Main	RMA Type*	Determines whether the RMA is direct or linked to a bill.
Main	Vendor*	Select the vendor to whom goods will be returned.
Main	Return Inventory Store*	Specifies the store handling returned inventory.
Main	Select Account*	Defines the financial account associated with the return transaction.
Main	Ref No	Optional reference number for tracking purposes.
Main	Project/Class	Associates the transaction with a project or classification if required.
Shipping	Ship Method	Specifies the method used to return goods, such as pickup or delivery.
Shipping	Ship Via/Carrier	Defines the carrier responsible for shipping the returned items.
Shipping	Shipping Terms	Specifies agreed shipping terms between the business and vendor.
Shipping	F.O.B	Indicates the freight ownership point (origin or destination).
Shipping	Total Weight	Records the total weight of the shipment.
Shipping	Ship Service	Defines service level such as standard or express.
Shipping	Ship Package Type	Specifies packaging type used for shipment.
Shipping	Shipping Notes	Allows entry of additional shipment instructions.
Shipping	Third Party Shipping Account#	Stores third-party shipping account reference if applicable.
Shipping	Shipping Expense Account	Account used for allocating shipping costs.
Shipping	Shipping Cost	Displays the total shipping charges.
Shipping	Tax Code	Specifies tax code applicable to shipping charges.
Shipping	Shipping Tax Amount	Displays tax applied to shipping cost.
Shipping	Total Amount	Displays total shipping cost including tax.

If the RMA Type is set to Vendor RMA-Linked, the Receipt* field becomes accessible, allowing you to enter the bill number for which you want to create the RMA.

Adding Lines to the Vendor RMA

After entering the header-level information, you can proceed to add line-level details. This includes selecting the item(s) to be returned, specifying quantities, unit prices, return notes, and any applicable taxes.

If the RMA type is “Vendor RMA-Linked”, the line-level details are automatically fetched from the associated bill. For “Vendor RMA-Direct”, you must manually add the item(s). To add item(s) to the Vendor RMA, click the “Add Items” button.

Vendor RMA Detail Fields

Field	Description
Item#	The unique identifier for the item.
Item Type	Indicates the the type of item, such as inventory, non-inventory, etc.
Description	This field is editable only when the RMA Type is set to Direct and not Linked. It displays the description of the item.
Unit Cost	This field is editable only when the RMA Type is set to Direct and not Linked. It displays the price of the item.
Restocking Fee	This field displays re-stocking fee for the item.
Qty	Quantity being returned.
Tax	Applicable tax code.
Amount	Displays the calculated amount, which is the result of (Unit Price * Qty - Taxes).
Return Note	You can enter return remarks to provide additional details about the return.
RCode	This field displays the item return code of the item that you are adding.

After entering the header fields and adding items, click Save to create the Vendor RMA. The system automatically assigns a unique number to the generated RMA. Once generated, this number becomes a permanent identifier and cannot be changed. After saving, the Vendor RMA is created in the Open status. For more information, refer to Vendor RMA Statuses.

Vendor RMA Workflow

A Vendor RMA can be created either directly from the Vendor RMA module or from an existing Vendor Bill. Choose the method based on whether the return is linked to a vendor bill.

1. Create Vendor RMA from the Vendor RMA module

Step 1: Navigate to Menu → Purchase → Vendor Credit → Vendor RMA. In the RMA Type field, select Vendor RMA-Direct.

Step 2: Enter the required header-level fields and shipping details, if applicable. Click Add Items to add the item(s) you want to return and specify their quantities.

Step 3: Click Save. The system generates a unique Vendor RMA number, and the Vendor RMA is created in Open status, ready for further processing.

1. Create Vendor RMA from the Vendor Bill

Step 1: Navigate to Menu → Purchase → Bill Centre, and open the required vendor bill. Click the Options menu (top-right corner) and select Create Vendor RMA.

You can perform the same process from the Vendor RMA module by selecting Vendor RMA-Linked in the RMA Type field. Then, click the search icon in the Receipt field and enter the required receipt details, such as Vendor, Store, and Bill Number, based on the option selected in the Search By dropdown.

Step 2: The system automatically opens a Vendor RMA screen with vendor details populated, the bill reference linked in the Receipt field, and item details prefilled from the bill.

Review the prefilled items and adjust the return quantities as required.

Step 3: Click Save. The Vendor RMA is generated in Open status.

After the Vendor RMA is created through either one of the above methods, complete the return process using the following workflow.

Step 5: Open the created Vendor RMA and click Release RMA from the Options menu.

The Vendor RMA status changes from Open to Released, and the system automatically generates a wave, visible in the Wave Centre.

Step 6: After the wave is generated, perform the warehouse operations such as picking and packing the returned items.

Step 7: The Vendor RMA status is automatically updated to Shipped if all items are sent, or Partially Shipped if only some quantities are shipped. The inventory clearing account is credited with the corresponding amount.

Once the wave is processed and shipped, the items are moved from the original warehouse location to the In Transit location.

Step 8: After the vendor confirms receipt of the returned items, open the Vendor RMA and click Post Vendor Credit from the Options menu.

The system creates a vendor credit record, clears the in-transit inventory balance, adjusts the Vendor Accounts Payable balance, and updates the Vendor RMA status to Credited.

Step 9: The generated vendor credit is available in the Vendor Credit Centre and can be applied to another bill or processed as required.

Users can select the default clearing account for inventory adjustments and transactions generated during the Vendor RMA process through the app configuration “Clearing Inventory Account for Vendor RMA.”

Vendor RMA Header Level Options

The following options are available in the Options drop-down menu:

• Release RMA: Releases the Vendor RMA and generates a wave for processing.

• Post Vendor Credit: Creates a vendor credit after the return process is completed.

• Post Vendor Credit (Selected Lines): Creates a vendor credit only for the selected return items.

• Void: Cancels the Vendor RMA record. Once voided, the record cannot be processed further.

Vendor RMA Statuses

Vendor RMA statuses indicate the current stage of the return process. The following statuses are available, from creation to final vendor credit processing.

• Open: The Vendor RMA has been created and is editable. No warehouse processing has started.

• Released: The Vendor RMA has been released, and a wave has been generated for warehouse processing.

• Partially Shipped: Some items included in the Vendor RMA have been shipped to the vendor, while the remaining items are pending shipment.

• Shipped: All items in the Vendor RMA have been shipped to the vendor.

• Partially Credited: Vendor credit has been posted for only some of the returned items.

• Credited: Vendor credit has been fully processed for all returned items, and the Vendor RMA process is complete.

How to Void a Vendor RMA?

A Vendor RMA can only be voided when it is in Open status. If the Vendor RMA is in Released status, the generated wave must be voided first before the Vendor RMA can be voided. Once you void the wave, the Vendor RMA changes from Released to Open status.

To void a Vendor RMA in Open status, follow the steps below:

Step 1: Navigate to the RMA Centre and open the Vendor RMA record you wish to void.

Step 2: Select Void from the options dropdown menu located in the top-right corner of the page.

Step 3: A confirmation dialog box appears displaying that the "Vendor RMA was voided successfully".

If the wave is already Shipped or Partially Shipped, the Vendor RMA cannot be voided.