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Customer return management is the process of tracking information about items that customers return to you. Just as you track information about items that come into your inventory when you receive purchased items, it is also important to keep track of the quantity and value of items that come into your inventory for returns.

Entering a Linked Return Authorization

A return authorization form is a record of expected customer returns holds information about the items you expect to receive. For more information, read Return Authorization (RMA) Forms.

A linked return authorization is created from a sales order, cash sale or invoice. It automatically shows the items from the original sale and is linked to the original sale.

This means that information is sourced from an existing transaction to create the authorization, such as item prices or quantities, so information does not need to be entered in the authorization manually.

To enter a linked return authorization:

  1. Do one of the following:
    1. View the cash sales list: Transactions > Sales > Enter Cash Sales > List
    1. View the invoices list: Transactions > Sales > Create Invoices > List
    1. View the sales order list: Transactions > Sales > Enter Sales Orders > List
  2. Click View next to a cash sale or invoice.
  3. Click the Authorize Return button.
  4. A customer return authorization opens that shows all items from the original order.
  5. You will receive a popup warning if there are existing return authorizations associated with this order.
  6. You can change the sales effective date for this transaction. The sales effective date determines which commission plan and historical sales team this transaction applies to.
  7. Check the Exclude Commissions box to exclude this transaction and its subordinate transactions from inclusion in all commission calculations. For example, selecting this box on a sales order excludes the sales order and the resulting invoice from all commission calculations for all sales people.
  8. Click the Items subtab and verify that all items on the return authorization are being returned.
  9. On the Billing subtab, the customer’s default billing address autofills the Bill To text field. You can change this address as needed.
  10. On the Payment subtab, select the customer’s original payment method. If you want to credit your customer’s credit card account and do not have an MeS merchant account, check the Card Approved box after the refund is approved.
  11. If you do have an MeS merchant account, the Card Approved box is automatically filled when the refund is approved.
  12. If you do not use NetSuite to process credit cards, enter any authorization information for this credit card.
  13. The Accounting subtab only shows if you are using the Multiple Currencies or Revenue Recognition features, if you have not enabled the Per-Line Taxes preference at Setup > Accounting > Taxes > Set Up Taxes, or if you have added fields to this subtab. On the Relationships subtab, enter a contact or partner details for this transaction.
  14. On the Sales Team subtab, if you use the Team Selling feature, select the Sales Team for this transaction.
  15. On the Communication subtab, enter communication information for this transaction.
  16. Click Save.

Receiving a Customer Return

When a shipment from a customer arrives at your business, process the return by matching the shipment to the corresponding return authorization number. Then, enter an item receipt for any items in that shipment against the open authorized return.

When you use the Advanced Receiving feature, you can mark authorized returned items as received when they arrive. When you receive an authorized returned order, you can indicate what was received and process the return based on those quantities.

By entering a receipt against the RMA, the following information is updated:

  • Items on return authorizations are recorded as received.
  • Inventory records are updated for the new stock levels.
  • Inventory asset accounts are updated with the values of returned items.
  • Status of the return is updated.

Then, your records show the most current information.

Receiving a Customer Return

When a shipment from a customer arrives at your business, process the return by matching the shipment to the corresponding return authorization number. Then, enter an item receipt for any items in that shipment against the open authorized return.

When you use the Advanced Receiving feature, you can mark authorized returned items as received when they arrive. When you receive an authorized returned order, you can indicate what was received and process the return based on those quantities.

By entering a receipt against the RMA, the following information is updated:

  • Items on return authorizations are recorded as received.
  • Inventory records are updated for the new stock levels.
  • Inventory asset accounts are updated with the values of returned items.
  • Status of the return is updated.

Then, your records show the most current information.

To receive an authorized customer return:

  1. Go to Transactions > Customers > Receive Returned Order.
  2. Select a customer from the dropdown list.
  3. In the Receive column, check the box next to the return you received from the customer.
  4. Click Submit.
  5. On the Item Receipt page:
    • Verify information in the following fields:
      • Customer – the customer who returned the order
      • Receipt of – the return authorization number of the return you are receiving
    • Verify or enter information in the following fields:
      • Date – the date on which the return was received
      • Posting Period – Select the period you want to post this transaction to. If a period is closed, you cannot post to that period
      • Ref. No. – a number you can later use to reference this partial shipment
      • iv. Memo – Enter an optional reference memo for this receipt. Later, you can search for this receipt by text entered in the memo
  6. On the Items subtab, check the box in the Receive column next to items you are receiving.
  7. In the Quantity column, enter the amount of each item you received in this shipment.
  8. In the Restock column, do one of the following:
    • Check the Restock box to return this item to your inventory. Your inventory reflects the increased count of the returned item and the value of your inventory is also increased.
    • Clear the Restock box to write the item off as an expense. Your inventory does not reflect the increased count of the returned item and the value of your inventory is not increased. Items that you write off are logged as an expense and the income you lose by not selling the item is posted as a loss.
  9. If you use the Multi-Location Inventory feature, you must select a location for each returned item.
  10. On the Expenses subtab, check the box in the Mark Received column next to expenses you want to receive.
  11. When you have finished, choose one of two options to post the information to your NetSuite account:
    • Click Save to save the information and return to the Transactions page.
    • Click Save & Refund to save the information and go to the cash refund for this return.

You credit customers only for what you received

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