Resolve an RMA

The final step is for the RMA officer to resolve the RMA with the customer. If the receipt action selected was Inspect, you must resolve the return order before moving on to this section. If the receipt action was Scrap, or Restock, the return order will be resolved automatically and you can resolve the RMA immediately.

In this article, you will learn how to authorize and deny refunds, replacements, and make sure that costs incurred are charged to the correct party.

NOTE: Marking products as received from a return order, or authorizing receipt not required from an RMA, will automatically create an authorized credit note for the value of the returned products, which will now be closed out with a refund or alternative depending on which RMA resolution is selected here. This is how Core correctly generates all accounting transactions for the return.

Prerequisites

Cin7 Core RMA requires a subscription add-on
Configure RMA permissions
Set return policies
Configure return settings
Raise an RMA in Cin7 Core
Return orders - Process returned products (if applicable)

Return expenses

Return costs that have been added to the associated return order will be shown on the Resolution tab. If the box next to an expense is checked, it will be charged to the customer. If the box next to an expense is unchecked, it will be charged to the merchant.

Expenses charged to the customer will be subtracted from the value of a refund, if applicable. If there is no outstanding amount owed to the customer, a new invoice will be created for the customer for the expense total.

When the RMA is resolved, merchant expenses for returned products within warranty (or that the merchant chooses to waive even though warranty is exceeded) will be charged to the Warranty expense account, while expenses for returned products or product where damage is not covered by warranty will be charged to the Non-warranty expense account (Expense accounts are configured in the return settings).

Refund the customer

Customers can be refunded for the entire value of the returned product or for the value minus any applicable return expenses. From the Resolution tab, check any expenses you wish to charge to the customer.

Under RMA resolution, select:

Apply credit now - an authorized credit note has been created by the returns workflow. This option allows refund to customer credit, and allocates the credit note total to:
- Original sale invoice if the sale invoice is not paid
- Customer credits if the sale invoice is fully paid
- Partially allocated to customer credits for the amount paid and remaining amount to original sale invoice, if the sale invoice is partially paid
- Replacement sale invoice if cross ship option is checked
Refund manually later - an authorized credit note has been created by the returns workflow. This option allows refund, but credit note amount must be refunded or allocated to customer credit manually.

Click Resolve to complete the resolution and generate the documents, which can be viewed in the Related orders tab.

Deny customer refund

From the Resolution tab, under RMA resolution, select No refund and click Resolve. This option is not available in the case of non-fulfilled orders, auto-scrapped orders and auto-restocked orders.

An authorized credit note has been created by the returns workflow but refund is denied. A new sale invoice with the same value will be created inside the original sale order, credit note value is allocated to the new invoice to close the sale. All of these documents can be viewed in the Related orders tab.

Return a product to the customer

Products may be returned to the customer, such as after being repaired. The Job resolution: Return to customer must have been selected in the associated return order for this RMA resolution to be available.

Back on the RMA display, select the Resolution tab for a product. In the RMA resolution drop down field, select to allow or deny the refund or replacement. Clicking Resolve will create a fulfillment task to return the item to the customer, which will appear in the Related orders tab.

Ship the returned item to the customer. The RMA will display a record of the date the item was shipped on the Resolution tab.

Send a replacement product to the customer

From the Resolution tab, under RMA resolution, select Replacement and click Resolve. There are four possible cases:

Warranty replacement option creates a new sale order and fulfillment for the replacement product/s. An authorized credit note is created by the returns workflow, and the amount is allocated to new sale invoice, making the replacement free as product is under warranty. In the related orders tab you can see: 1. return order 2. credit note 3. replacement sale.
- Product is under warranty, RMA officer uses Warranty replacement to send the replacement to the customer at the merchant's expense (posted to warranty expense account).
- Product is not under warranty but the RMA officer chooses to give free replacement, and can thus choose Warranty replacement, posting the expense to the warranty expense account.
New sale replacementcreates a new sale order and fulfillment for the replacement product/s. An authorized is created by the returns workflow, but replacement is at customer expense, hence credit can not be applied to replacement sale's invoice. This option creates a new sale invoice inside the original sale order, and the credit note value is allocated to the new invoice to close the original sale.
In the related orders tab you can see: 1. return order 2. credit note 3. replacement sale 4. sale invoice.
- Product is under warranty but damaged by customer (or similar) and no longer covered, RMA officer users New sale replacement to send replacement product at customer's expense.
- Product is not under warranty, RMA officer users New sale replacement to send replacement product at customer's expense.

Return resolution by supplier (not merchant)

When a customer is instructed to return their products to the supplier, RMA officers must then communicate the supplier resolution from the Resolution tab - scrap (defective), scrap (damaged), or replacement by supplier. From there the merchant can choose to refund, deny a refund, or replace from the RMA resolution menu. Clicking Resolve completes the resolution for this product.

View generated credit notes, invoices, fulfillments, etc.

Any credit note, invoice, fulfillment, or other task created as part of the returns or RMA workflow is stored in the Related orders tab of the RMA.