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The Return Merchandise Authorization module does not post directly to the general ledger. The Return Merchandise Authorization general ledger accounts specified are used during the Sales Order Sales Journal update process. For more information on the Return Merchandise Authorization general ledger accounts, see the topics below.

 RMA Scrap Account

This asset account contains the current inventory value for scrap. It is debited when an inventory item is returned for scrap. You can use a single scrap account for the entire scrap inventory, or you can assign separate accounts for different product lines in the Inventory Management Product Line Maintenance window. This account can also be assigned to be used for special or miscellaneous item codes in the RMA Options window.

 

 Repairs in Process Account

This asset account is debited when an item is returned for repair and credited when the repaired item is returned to the customer. You can use a single Repairs in Process account for all repairs, or you can assign separate accounts for different product lines in the Inventory Management Product Line Maintenance window. This account can also be assigned to be used for special or miscellaneous item codes in the RMA Options window. For information on processing repair items, see Process a Repair Item.

 

 Repairs Clearing Account

This asset account is credited when an item is returned for repair and debited when the repaired item is returned to the customer. You can use a single Repairs Clearing account for all repairs, or you can assign separate accounts for different product lines in the Inventory Management Product Line Maintenance window. This account can also be assigned to be used for special or miscellaneous item codes in the RMA Options window. For information on processing repair items, see Process a Repair Item.

 

The following are examples of how postings are made to the general ledger for Return Merchandise Authorization.

Example -  Posting Credit Amounts (Example 1)

An item is returned by the customer and can be re-sold. Credit is selected in the Customer Action field on the Return Merchandise Authorization Entry Lines tab or RMA Receipts Entry Lines tab.

 

Item Action	G/L Account	Debit	Credit
Stock	Accounts Receivable		79.80
	Inventory	32.75
	Sales Returns	79.80
	Cost of Goods Sold	______	32.75
		112.55	112.55

 

If there is a restocking charge of $1.00:

Item Action	G/L Account	Debit	Credit
Stock	Accounts Receivable		78.80
	Inventory	32.75
	Sales Returns	79.80
	Restocking Charges		1.00
	Cost of Goods Sold	______	32.75
		112.55	112.55

 

 

 Example - Posting Credit Amounts (Example 2)

A damaged item is returned by the customer and cannot be re-sold. Credit is selected in the Customer Action field on the Return Merchandise Authorization Entry Lines tab or RMA Receipts Entry Lines tab.

Item Action	G/L Account	Debit	Credit
Scrap	Accounts Receivable		79.80
	RMA Scrap	32.75
	Sales Returns	79.80
	Cost of Goods Sold	______	32.75
		112.55	112.55

 

 

 Example - Posting Replacement Amounts

The customer returns an item and wants a replacement item shipped. Replacement is selected in the Customer Action field on the Return Merchandise Authorization Entry Lines tab or RMA Receipts Entry Lines tab.

Item Action	G/L Account	Debit	Credit
Scrap	Accounts Receivable		79.80
	RMA Scrap	32.75
	Sales Returns	79.80
	Cost of Goods Sold	______	32.75
		112.55	112.55

 

When the sales order is invoiced, the following general ledger accounts are posted:

Item Action	G/L Account	Debit	Credit
Scrap	Accounts Receivable	79.80
	Inventory		32.75
	Sales/Income		79.80
	Cost of Goods Sold	32.75	_____
		112.55	112.55

 

 

 Example - Posting Repair Amounts

The customer returns an item that needs to be repaired. Repair is selected in the Customer Action field on the Return Merchandise Authorization Entry Lines tab or RMA Receipts Entry Lines tab.

Note The following accounts are posted only if the Set Unit Cost to Zero Dollars for Repair Items check box is cleared on the RMA Options Main tab.

The item is returned to the repair warehouse:

Item Action	G/L Account	Debit	Credit
Repair	Repairs in Process	32.75
	Repairs Clearing	____	32.75
		32.75	32.75

 

The item is shipped back to the customer:

Item Action	G/L Account	Debit	Credit
Repair	Repairs in Process		32.75
	Repairs Clearing	32.75	____
		32.75	32.75

 

For more information on processing repair items, see Process a Repair Item.