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RMA Processing

Authorize a Return

Order Management offers several options for authorizing returns. The Sales
Orders window enables you to authorize a new return.

Reference Source

In the Returns tab of the Sales Order Line Items window, you can enter all the
data for a return line or you can use reference sources to speed data entry. A
reference source is usually a document currently existing in Order Management
that supplies default information to the return line. A reference source can be a
sales order line or invoice line. You reference a sales order either by the sales
order number or a purchase order number you entered on the sales order. You
reference an invoice by the invoice number. Once you specify a reference
document, you must specify which line on the document the customer is
returning. Order Management takes the item, quantity, unit, credit (selling) price,
original price adjustments, and original sales credits information from the
reference line and defaults it on the return line. The selling price defaults as the
credit price on the return. You can modify this amount through price adjustments.

You can also use serial numbers as reference types.

Credit Memos

If the return workflow includes the Invoicing Activity, you can create applied credit
memos or on account credits from your returns. In this case, if you use a
reference source, the Credit to Invoice field is automatically populated if there
was an invoice on the referenced line and the return creates an applied credit

Note: The Credit to Invoice field cannot be updated by a user.

If you use an invoice as a reference source, it defaults as the Credit To Invoice. If

you leave the field blank, the return creates an on account credit. If you do not
use a reference source, you cannot specify a Credit To Invoice.

When there is an invoice on the referenced line, the return quantity defaults to
the quantity on the invoice line, superseding the quantity defaulting from the
reference source. Regardless of the default source, you can decrease the
quantity if your customer is returning less than the original amount.

You cannot, however, increase the quantity above the original quantity on the
Credit To Invoice line or reference source line if there is no Credit To Invoice. This
has significance if you business process supports the creation of multiple
invoices for a single order line. Oracle Order Management does not allow the
creation or generation of multiple invoices for the same order line.

Note: Order Management does however, automatically split an

order line into 2 separate lines if a order line has been shipped
partially. This eliminates many of the business practices for creating
multiple invoices for a single order line.Please note that internal
order lines are never split, either manually or by the system.

Order Management also provides the option of not using any reference source
and entering return line information without defaults. This results in the creation
of a single return line and an on-account credit. If your customer returns the full
order quantity and receives an applied credit memo, you would enter 2 return
lines regardless of the reference document, as you must specify each invoice as
a Credit To Invoice. You would not have the option of entering the line without a
reference source because a reference source is necessary to create the applied
credit memo.

Sales Credits

Order Management automatically manages your sales credits when interfacing a

credit memo to Oracle Receivables. If you create an applied credit memo, the
sales credits from the original invoice are reduced accordingly, regardless of the
sales credits entered on the return. If you create an on account credit from a
return, sales credits are reduced according to the sales credit information you
enter on the return.


Configurations are a special class of returning items. Configurations are unique

to a sales order because customers may choose different options on each order
line and the underlying bill of material may change between orders.
Consequently, when returning a configuration, it is useful to copy the original
sales order or have a reference source to tie the return to the sales order or

In Order Management, returning configurations is applicable for both ATO and

PTO configurations.

• You can create a return if an item is returnable. For example, if you want
to return a class because the price is on the class line, then you need to
set the class to be returnable.

• You can receive in Oracle Purchasing's receiving module only if the item is
returnable, shippable, stockable, and transactable.
• You can receive credit only if return lines are interfaced to AR. Return lines
are interfaced to AR only if the item has proper invoicing attributes and the
lines flow has invoicing activity in it.

Configuration Return with a Reference Source

Reference Order Line LOV lists the following:

• All of the configuration lines including Model, Class, and Options

• ATO configured items

• PTO included items

Users can select any of those lines above. Order Management explodes the
children underneath a referenced line, including the ATO configured item or PTO
included items. The Sales Orders window displays the returnable configuration
lines. Users can delete lines that they don't want to return.

Only Returnable children will be populated automatically. You need to make sure
that you set the item attributes correctly.

ATO configured items will be populated only if the reference is to the ATO model
line. Referencing an ATO class line or option line does not create any configured
item lines.

You can use Copy Order functionality to create RMA lines. Copy Order will
behave the same way as the Reference functionality from the Sales Orders

Configuration Return without a Reference Source:

• Order Management enables users to enter ATO/PTO configuration (model,

class, or options as individual lines) without any reference information as
long as items are returnable.

• Order Management does not automatically explode any configuration

without reference.

• Order Management does not insert the ATO configured item or PTO
included item of any configuration without reference.

• Order Management enables users to enter an ATO configured item or

PTO included item as long as it is returnable.

• The ATO configured item or PTO included item should be on a price list to
be Received and Credited.
Configuration Workflow Considerations:

Non-shippable, non-transactable, non-stockable return lines will complete

Receiving Activity (Receiving and Inspection) with a Not Eligible result. Oracle
Order Management automatically puts all return lines for a configuration in a
fulfillment set. This ensures that goods are received before credit is generated for
related return lines.

See: Copying Orders.

The table below describes line creation options for processing a RMA for
configurations with either an existing reference source or no reference source.

Configuration Type Reference Source No Reference Source

PTO and ATO Option List of values in Enter individual RMA lines.
Selection Method Reference Line field for
individual RMA lines.
Automatically Return Yes, return lines No, enter included items as
PTO Included Items? automatically created for individual RMA lines.
included items.
Automatically Return Yes, return lines No, enter the ATO configured
ATO Configured automatically created for item on an RMA line to add the
Item? ATO configured item. item back into Oracle

Approve an RMA

You can institute business reviews of returns through approvals, such as legal or
management reviews. If your return workflow has order level or line level
approvals, use the Workflow Notifications window to approve the return. View
approval history using the Workflow Monitor.

Create a Replacement Order

Create replacement orders for items your customer is returning using the Sales
Orders window. You can copy the entire RMA, or just the lines, directly to a sales
order. Once you copy an RMA or the RMA lines to a sales order, you can use the
Sales Orders window to modify the new sales order. You can also directly enter
the replacement order in the Sales Orders window.

You can create a replacement order for any RMA regardless of the return line
type used. However, if your RMA generated a credit to the customer, then you
probably want the replacement order to use a workflow that includes the
Invoicing Activity so that your customer receives an invoice for the replacement

If your RMA did not generate a credit to the customer, then you probably want the
replacement order to use a workflow that does not include the Invoicing Activity
to avoid double-billing your customer. See: Copying Orders.

Receive Customer Returns

Receive returning items into Inventory using the Purchasing Receipts window.
Oracle Purchasing communicates quantities received in this window to Order
Management. Entries in this window affect the order lines in Order Management.
If any partial amount of the returning quantity is accepted, Order management
splits the lines into one part that is fully received and one part that is not. When
the full returning quantity is accepted, the remaining line is then fulfilled.

Attention: It is not advisable to accept items requiring

inspection directly into a subinventory and then process those
items through inspection. When an item is accepted into a
subinventory in the Receive Customer Returns window, it may
become eligible for the next action in its workflow depending
on the prerequisite, and the next workflow activity would be
performed whether the item passed or failed inspection. If the
next workflow activity is Invoicing Activity, it would result in
creating credits for rejected and accepted items.

Return Items to Customer

Use the Return to Customers window in Oracle Purchasing to return items to a

customer that you earlier received into a subinventory through the Receive
Customer Returns window.

Generate Credits from Returns

Indicate RMA lines you want to generate credits for by running the Invoicing
Activity. Order Management interfaces to Oracle Receivables any returns that
include the seeded Invoicing activity for the Order Lines workflow. Upon
completion of the Invoicing Activity, you submit AutoInvoice from Oracle
Receivables to import credit data into Oracle Receivables. See: Invoice

Close Returns

Order Management automatically closes returns that have progressed through

and successfully completed their order flow if you have the Close Orders activity
in your orders flow.
View Returns

You can see the current status of a return or return lines using the Order
Organizer and Sales Orders windows or the Workflow Monitor.

Report on Returns

Perform cause analysis for your returns based on return reasons entered on
RMA lines in the Return By Reason Report.