---
id: sales-returns
title: "Sales Returns & RMA"
description: "Manage customer return authorizations (RMA), restock returned inventory, and issue credit adjustments."
category: "Sales"
order: 7
resource: "orders"
action: "read"
routes:
  - "/sales-returns"
  - "/sales-returns/:id"
tags: ["returns", "rma", "sales", "restocking", "credit-notes", "resolutions"]
fields:
  return_number:
    title: "Return Number"
    summary: "Unique return authorization identifier (e.g. RMA-2026-00018)."
  sales_order_id:
    title: "Original Sales Order"
    summary: "Invoiced sales order against which items are being returned."
  customer_id:
    title: "Customer"
    summary: "Customer returning the goods, inherited from the originating sales order."
  resolution:
    title: "Return Resolution"
    summary: "Refund (generates credit note) vs Replacement (re-orders replacement items)."
  return_fee:
    title: "Restocking Fee"
    summary: "Handling or restocking charge deducted from the customer's credit balance."
  status:
    title: "Return Status"
    summary: "Stage of the return (Draft, Confirmed, Processed, Cancelled)."
related:
  - "sales-orders"
  - "sales-credit-notes"
  - "receiving"
  - "transfers-quarantine"
---

# 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.

---

## Return Lifecycle & Business Logic

```mermaid
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)`.

---

## 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.

---

## 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`). |