Get started with return orders and the RMA processes in D365FO

D365FO comes with multiple ways to create return orders. It is possible to press “Credit note” in the “Sell” action tab on the “All sales order” form or from the sales order line or add a negative line manually to the sales order. However, the “Sales returns” form under the “Sales and marketing” module adds more features and functionality to the return process than the essential functions available on the sales order. For instance, “Sales returns” have different disposition codes for different return scenarios, can manage intercompany return orders, create and link related information like replacement orders to the RMA case, and automatically add charges based on return reason codes. The “sales returns” will add a whole new layer of functionality to the basic return process.

Overall sales return process

When creating an RMA order from the “All return orders” form, a return sales order will automatically be linked to the RMA order.

And the RMA number will be added to the sales order header.

The reason code can be added to the header when creating the return order. After making the return order, the function “Find sales order” must be used to find the sales order line that is returned from.

The “Find sales order” function will link to the original sales order and fetch the correct sales price for the return process. A “Reason code” and a “Reason comment” can be added to the returned line.

The next step is to press “Return order” in the action tab and send the return order to the customer. If this is a “Credit only” return order. Then go to “Update line” and press “Registration” to add the disposition code. Otherwise, the disposition code will be added as a part of the arrival and inspection process at the warehouse.

The return process can be categorized into two methods either it will be 1) a physical return where the item will return to the selling company, or 2) it will be credit only, and nothing is returned to the selling company.

If the processes are summarized into overall steps, they will be different in the following matter:

Physical return:

1. Create a return order and send the customer a “return order” document.
2. Item arrives at the warehouse for inspection.
3. Add disposition code based on the inspection as a part of the registration process. The disposition code will determine what should be done to the product.
4. Generate the packing slip and commit the disposition code.
5. Post invoice from sales order and close the return order.

?

The “Credit only” process is a few steps shorter.

1. Create the return order and set the disposition code to “Credit only” when registering the item from the “All return orders” form.
2. Post the invoice from the sales order and close the return order.

?

The reason code can be set to mandatory, blocking the RMA process until adding a reason code. However, it is not recommended to turn this functionality on; therefore, set this parameter to “No.”

?

Return scenarios and disposition codes

The following return scenarios can be managed within the standard RMA processes. The available disposition codes and return scenarios are as follows:

• Credit only – The customer is credited the sales price minus charges. The item will not be returned to the selling company.
• Credit - The customer is credited the sales price minus charges. The item is returned and added to the inventory.
• Replace and credit - The customer is credited the sales price minus charges. The item is returned and added to the inventory. A separate sales order is created for the replacement item.
• Replace and scrap - The customer is credited the sales price minus charges. The item is returned and scrapped. A separate sales order is created for the replacement item. The loss from the article is posted to a ledger.
• Return to customer – The item is received at the warehouse but is returned to the customer. Charges can be added to this order for customers to pay, e.g., transportation.
• Scrap - The customer is credited the sales price minus charges. The item is returned or scrapped. The loss from the item is posted to a ledger.
• Up-front replacement – The up-front replacement is not a disposition code but a return scenario. It works by manually creating a replacement order before receiving the defective item at the warehouse. The creation happens by pressing “Replacement order” before receiving the defective item and setting a tick mark in the “Copy return order lines” field before pressing “OK.” Then the switch “Up-front replacement” is automatically set to “Yes.”

Process the replacement order before the return order. Remember to add a disposition code for replacement before receiving the defective item because it cannot be added afterward.

?

To learn more about the RMA processes and how to:

• Configure auto charges for return orders.
• Execute the different RMA scenarios.
• Use the purchase order return functionality.
• Process quarantine orders related to return orders.
• Work with direct delivery return orders.
• Understand and combine RMA with intercompany order processes.

Reach out and get help.