Return Merchandise Authorization (RMA) or Sales Return:: User Guide

<!DOCTYPE html> <html> <head> <title>Return Merchandise Authorization (RMA) or Sales Return:: User Guide | Zoho Inventory</title> <meta name="description" content="Learn about the RMA or the sales return process and how you can handle various cases of sales return in Zoho Inventory."/> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/> <meta name="viewport" content="width=device-width, initial-scale=1"> <link rel="SHORTCUT ICON" href="https://www.zohowebstatic.com/sites/zweb/images/favicon.ico" type="image/x-icon"> <link href="/inventory/styles/common/zoho-puvi.css" rel="stylesheet" type="text/css"> <link href="/inventory/styles/bootstrap.min.css" rel="stylesheet" type="text/css"> <link href="/inventory/help/styles/help.css" rel="stylesheet" type="text/css"> <link rel="alternate" hreflang="x-default" href="https://www.zoho.com/inventory/help/sales-returns/sales-returns-overview.html"> <link rel="alternate" hreflang="en-gb" 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alt="Print this page" onclick="javascript:window.print()"> </form> <h2 class="product-logo to-print" translate="no"><img src="/inventory/images/inventory-icon-default.svg?v=2"/>Inventory</h2> <h1 id="rma-or-sales-return">RMA or Sales Return</h1> <p>A <strong>Return Material Authorization (RMA)</strong> or <strong>Sales Return</strong> is the process of a seller accepting a purchased item back from the consumer. In turn, the customer receives credit, cash refund or a replacement. Some of the common reasons for return include receiving damaged/expired products, wrong delivery, fraudulent orders etc.</p> <div class="embed video-player"> <iframe class="youtube-player" type="text/html" src="//www.youtube-nocookie.com/embed/ows3JafCM_8?rel=0" frameborder="0" allowfullscreen></iframe> </div> <div class="side-grid"><h2 id="in-this-page">IN THIS PAGE…</h2> <ul> <li><a href="#return-workflow">Workflow of Sales Return</a></li> <li><a href="#returnable-item">Qualify Items for Return</a></li> <li><a href="#create-returns">Create Sales Return</a></li> <li><a href="#create-credit-note">Create Credit Note</a></li> <li><a href="#import-credit-notes">Import Credit Notes</a></li> <li><a href="#export-credit-notes">Export Credit Notes</a></li> <li><a href="/inventory/kb/sales-returns/index.html" target="_blank">More Cases and FAQ</a></li> </ul> </div> <hr> <h3 id="return-workflow">Workflow of a Sales Return</h3> <p>The various stages of processing a sales return in Zoho Inventory.</p> <p><img src="/inventory/help/images/sales-returns/sales-return-workflow.png" alt="Sales Return workflow"></p> <hr> <h3 id="returnable-item">Qualify Items for Return</h3> <p>Before you begin with sales return, your inventory items must be eligible for return. A sales return can only be initiated for items that you qualify as returnable.</p> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> Service items and items with only purchase information cannot be returned.</p> </div> <ul> <li>Navigate to the <strong>Items</strong> tab in the sidebar.</li> <li>Click the <strong>+New</strong> button to <a href="/inventory/help/items/item-creation.html#creating-a-new-item" target="_blank">create a new item</a>.</li> <li>Enter the basic details.</li> <li>Toggle the <strong>Returnable Item</strong> switch. Switch turns blue to indicate ON.</li> </ul> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> If the switch is not turned on, the item will be considered <strong>non-returnable</strong> and you won’t be able to raise a sales return for it.</p> </div> <ul> <li>Click <strong>Save</strong> to create a new returnable item.</li> </ul> <p><img src="/inventory/help/images/sales-returns/mark-item-returnable.png" alt="Marking an item returnable"></p> <h4 id="bulk-action">Bulk Action</h4> <p>You can also mark your existing items as returnable in one go. To do so:</p> <ul> <li>Navigate to the <strong>Items</strong> tab in the sidebar.</li> <li>Open the items list view.</li> <li>Mark the checkbox beside the item name to select the item.</li> <li>Click on <strong>More Actions</strong> and select <strong>Mark as Returnable</strong>. The selected items will be marked as returnable.</li> </ul> <p><img src="/inventory/help/images/sales-returns/mark-item-returnable-bulk.png" alt="Marking items returnable in bulk"></p> <hr> <h3 id="create-returns">Create Sales Return</h3> <p><strong>Scenario:</strong> Let us consider a most common business scenario where you initiate a sale, ship the products and get paid for it. After receiving the product, the customer returns it due to unforeseen reasons. To handle this in Zoho Inventory:</p> <h4 id="1-create-a-sales-return">1. Create a Sales Return</h4> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> You cannot create sales returns for orders that are drop shipped or manually fulfilled.</p> </div> <ul> <li>Click on the sales order tab from the side bar.</li> <li>Open the respective sales order.</li> <li>Click the <strong>Create</strong> button.</li> <li>Choose <strong>Sales Return</strong> from the dropdown.</li> </ul> <p><img src="/inventory/help/images/sales-returns/sales-return-menu.png" alt="Sales Return menu"></p> <ul> <li>Enter the sales return details.</li> <li>Configure the quantity of the returned items.</li> <li>If you want to record damaged/expired stock in the sales return, enable the <strong>‘This sales return contains credit-only goods’</strong> option.</li> <li>The Return Details will be split into two sections: <strong>Return Quantity</strong> and <strong>Credit-Only</strong>.</li> <li>Enter the receivable count in <strong>Return Quantity</strong> field and the damaged count in the <strong>Credit-Only</strong> field for the respective items.</li> </ul> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> The quantity specified in the Credit-Only field will not be taken into stock.</p> </div> <p><img src="/inventory/help/images/sales-returns/sales-return-new.png" alt="Sales Return new page"></p> <ul> <li>Click <strong>Save</strong> to create a sales return.</li> </ul> <h4 id="receive-items">2. Receive Items in the Sales Return</h4> <p>A sales return is raised only as a proof of items being returned. The stock(physical stock) of the returned item increases only when you receive it in your warehouse. To record a receive:</p> <ul> <li>Go to the sales return.</li> <li>Click on the <strong>Receive</strong> button.</li> </ul> <p><img src="/inventory/help/images/sales-returns/sales-return-receive-button.png" alt="Receiving items in the sales return"></p> <ul> <li>Configure the items and the quantity that you want to receive.</li> <li>If you have enabled advanced inventory tracking in sales return receipts, you can add the serial/batch numbers for the items here. <ul> <li>Click the <strong>Add serial numbers</strong> or <strong>Add batch numbers</strong> option below the quantity.</li> <li>Enter the serial or batch details of the received item and click <strong>Save</strong>.</li> </ul> </li> </ul> <img alt="Serial/batch tracking" src="/inventory/help/images/sales-returns/sr-advanced-inventory-tracking.png" width="600" /> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> To enable tracking in packages, purchase receives and sales return receipts, go to <em>Settings</em> > <em>Preferences</em> > <em>Items</em>. Under <em>Advanced Inventory Tracking</em>, choose <strong>Track in packages, purchase receives and return receipts</strong> option.</p> </div> <ul> <li>Click <strong>Save</strong> to record a receive.</li> <li>From the sales return, again click <strong>Receive</strong> to receive the rest of the returned items.</li> </ul> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> If you have specified credit-only goods in the sales return, you will not be able to receive it as it will not be taken into stock.</p> </div> <h4 id="create-credit-note">3. Create Credit Note</h4> <p>To provide a refund or credit for the returned items, you have to create a credit note. Creating a credit note will also increase the accounting stock of the underlying items.</p> <p>To create a credit note:</p> <ul> <li>Open the sales return.</li> <li>Go to <strong>More</strong></li> <li>Select <strong>Create Credit Note</strong>.</li> </ul> <p><img src="/inventory/help/images/sales-returns/credit-note-create-button.png" alt="Create credit note menu"></p> <ul> <li>Configure the items for which you want to create a credit note.</li> </ul> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> Learn how you can handle the return of batch tracked or serial number tracked items <a href="/inventory/kb/sales-returns/advanced-return-tracking.html" target="_blank">here</a>.</p> </div> <h4 id="4-record-a-refund-or-apply-credits-to-invoices">4. Record a Refund or Apply Credits to Invoices</h4> <p>A sales return process is not usually complete without a refund. To record a refund:</p> <ul> <li>Open the above credit note.</li> <li>Click on <strong>More > Refund</strong>.</li> </ul> <p><img src="/inventory/help/images/sales-returns/credit-note-refund-button.png" alt="Refund menu"></p> <ul> <li>Enter the refund amount.</li> <li>Select the expense account.</li> <li>Click <strong>Save</strong> to record the refund.</li> </ul> <p>If the customer is a regular buyer, then instead of giving cash refunds you can provide credits. These credits can be applied to their pending or future invoices.</p> <p>To apply credits to invoices:</p> <ul> <li>On the same credit note page, click the <strong>Apply to Invoice</strong> button.</li> <li>Distribute the credit balance against each invoice.</li> </ul> <p><img src="/inventory/help/images/sales-returns/apply-credits-page.png" alt="Applying credits to invoices"></p> <ul> <li>Click <strong>Save</strong> to apply the credits. The credit will be deducted from the total invoice amount.</li> </ul> <div class="tips-insight"><div class="tips-insight-img"></div> <p><b>Insight:</b> A credit note created for a customer can only be applied to the invoices created for the same customer.</p> </div> <p>To learn how you can handle more of such cases of sales return in Zoho Inventory, visit our <a href="/inventory/kb/sales-returns/index.html" target="_blank">FAQ section</a>.</p> <hr> <h3 id="import-credit-notes">Import Credit Notes</h3> <p>If you already have a list of credits for your customers, you can import them into Zoho Inventory in CSV, TSV or XLS format.</p> <p>To know the format of the import, i.e. the columns and data to be included in the import file, you can download the sample import file which we鈥檒l be looking at in the steps below.</p> <ol> <li> <p>Click the <strong>Returns</strong> dropdown on the left sidebar and go to the <strong>Credit Notes</strong> module.</p> </li> <li> <p>Click the <img alt="Menu icon" src="/inventory/help/images/icons/hamburger-icon.png" width="25" /> icon.</p> </li> <li> <p>Click the <strong>Import Credit Notes</strong> option.</p> <img alt="Import credits menu" src="/inventory/help/images/sales-returns/import-cn1.png" width="180" /> </li> <li> <p>Click the <strong>Choose File</strong> button to browse and upload your import file. You can download the sample CSV or XLS file for your reference.</p> </li> <li> <p>If you want to auto-generate the credit note numbers, select the <strong>Auto-generate Credit Note Number</strong> option.</p> </li> <li> <p>Click <strong>Next</strong> to proceed to the field mapping page.</p> <img alt="Import credits - upload file" src="/inventory/help/images/sales-returns/import-cn2.png" width="500" /> </li> <li> <p>Map the columns in Zoho Inventory with the appropriate column in your import file.</p> </li> <li> <p>Click <strong>Next</strong> to proceed to the preview section.</p> <img alt="Import credits - map fields" src="/inventory/help/images/sales-returns/import-cn3.png" width="500" /> </li> <li> <p>Preview the summary of the records that can be imported.</p> </li> <li> <p>Click <strong>Import</strong> if you’re ready, or else, click <strong>Previous</strong> if you need to make any changes.</p> </li> </ol> <hr> <h3 id="export-credit-notes">Export Credit Notes</h3> <p>To download the credit note details to your system:</p> <ol> <li> <p>Click the <strong>Returns</strong> dropdown on the left sidebar and go to the <strong>Credit Notes</strong> module.</p> </li> <li> <p>Click the <img alt="Menu icon" src="/inventory/help/images/icons/hamburger-icon.png" width="25" /> icon.</p> </li> <li> <p>Click the <strong>Export Credit Notes</strong> option.</p> <img alt="Export credits menu" src="/inventory/help/images/sales-returns/export-cn1.png" width="180" /> </li> <li> <p>If you want to only export credits from a <em>specific period</em>, select the period.</p> </li> <li> <p>Select an export template (optional). 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