Sales Returns & RMA

The Sales Returns module manages Return Merchandise Authorizations (RMA). It coordinates returning goods back to warehouse stock, inspecting item condition, and issuing financial credit adjustments.

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Return Lifecycle & Business Logic

stateDiagram-v2
    [*] --> Draft : Create RMA
    Draft --> Confirmed : Authorize RMA
    Confirmed --> Processed : Receive, Restock & Credit
    Confirmed --> Draft : Revise Lines
    Draft --> Cancelled : Cancel
    Confirmed --> Cancelled : Cancel

1. Invoicing Invariant & Quantity Validation

• Invoiced Precondition: Returns can only be initiated against Sales Orders in Invoiced state.
• Return Ceiling: For each order line:

  Maximum Returnable Quantity = Invoiced Quantity - Previously Processed Return Quantities

  Attempting to authorize quantities above this boundary is strictly rejected.

2. Credit Calculation & Restocking Fees

The system calculates aggregate return credit using line-level pricing from the original sales order:

Net Credit = Subtotal + Total Tax - Total Restocking Fees

• Line Pricing: Calculated via original line unit price, original line discount %, and current tax rate:

  Line Net Amount = round2(Returned Quantity * Original Unit Price * (1 - Original Discount% / 100))
  Line Tax Amount = round2(Line Net Amount * (Tax Rate% / 100))

• Resolution Differences:
  • Refund: Line contributes to Subtotal and Total Tax, generating a linked Sales Credit Note.
  • Replacement: Generates 0.00 financial credit; triggers a replacement dispatch workflow.
• Restocking Fees: Deducted directly from gross credit (Total Credit = Subtotal + Tax - Restocking Fees).

3. Physical Restocking & GL Postings

When warehouse staff mark an RMA as Processed:

1. Physical Stock:
   • Good Condition: Restocked into active pick/storage bins, increasing On Hand (OH) and Available stock.
   • Damaged / Defective: Routed into a Quarantine Bin for inspection or vendor claim.
2. General Ledger Journal Postings:
   • Financial Credit: Debit: Sales Returns / Revenue, Debit: Tax Liability, Credit: Accounts Receivable.
   • Inventory Restock: Debit: Inventory Asset, Credit: Cost of Goods Sold (COGS).

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Step-by-Step Workflows

1. Authorizing a Return (RMA)

1. Go to Sales → Sales Returns (/sales-returns).
2. Click New Return and select the original Sales Order.
3. Select line items and specify the Returned Quantity (must be <= Invoiced Quantity).
4. Select the Return Reason and set the Resolution (Refund or Replacement).
5. (Optional) Enter a Restocking Fee.
6. Click Confirm Return to generate the official RMA document for the customer.

2. Receiving and Processing Goods

1. When physical items arrive at the dock, open Receiving → Customer Returns.
2. Inspect item condition and assign destination storage bins (or Quarantine bin if damaged).
3. Click Process Return to update perpetual inventory counts and automatically post the Credit Note.

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Field Reference

Field	Description
Return Number	Unique RMA identifier (e.g. RMA-2026-00018).
Sales Order	Originating invoiced sales order reference.
Customer	Account returning the merchandise.
Returned Quantity	Authorized unit count (must be <= unreturned invoiced quantity).
Resolution	Action type: Refund (financial credit) or Replacement.
Return Reason	Quality or commercial reason code.
Restocking Fee	Deducted administrative or return handling charge.
Status	Stage (Draft, Confirmed, Processed, Cancelled).