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Returns & Credit Notes ​

Managing returns efficiently is crucial for customer satisfaction and accurate accounting. This guide covers the complete returns process and credit note management in Angage ERP.

Understanding Returns ​

Return Types ​

Product Returns ​

  • Defective items
  • Wrong product shipped
  • Damaged in transit
  • Customer changed mind
  • Quality issues

Service Credits ​

  • Service not delivered
  • Quality below standard
  • Partial completion
  • Billing errors
  • Contract adjustments

Exchange Orders ​

  • Size/color swap
  • Product upgrade
  • Warranty replacement
  • Model exchange
  • Feature change

Return Process Flow ​

mermaid
graph TD
    A[Customer Request] --> B{Evaluate Request}
    B -->|Approved| C[Create RMA]
    B -->|Rejected| D[Notify Customer]
    C --> E[Generate Return Label]
    E --> F[Customer Ships]
    F --> G[Receive & Inspect]
    G --> H{Inspection Result}
    H -->|Accepted| I[Process Credit/Refund]
    H -->|Rejected| J[Contact Customer]
    I --> K[Update Inventory]
    K --> L[Close RMA]

Creating Returns ​

Return Merchandise Authorization (RMA) ​

Creating RMA from Order ​

  1. Open original sales order
  2. Click Create Return
  3. Select items to return:
    • Check items
    • Enter quantities
    • Select reason codes
  4. Set return action:
    • Refund
    • Exchange
    • Store credit
    • Repair
  5. Generate RMA number

Direct RMA Creation ​

  1. Navigate to Sales → Returns
  2. Click New RMA
  3. Search for customer/order
  4. Enter return details
  5. Save and send to customer

Return Reasons ​

Configure standard reasons:

  • Defective: Manufacturing defect
  • Damaged: Shipping damage
  • Wrong Item: Incorrect product sent
  • Not Needed: Customer changed mind
  • Late Delivery: Missed deadline
  • Other: Custom reason

How-To Guides ​

How to Process a Return ​

Step 1: Receive Request ​

  1. Customer contacts support
  2. Verify order details
  3. Check return policy:
    • Time limits
    • Condition requirements
    • Restocking fees
    • Shipping responsibility

Step 2: Create RMA ​

  1. Generate RMA number
  2. Set expectations:
    • Return shipping method
    • Inspection process
    • Refund timeline
    • Special instructions
  3. Email RMA to customer

Step 3: Receive Items ​

  1. Scan RMA barcode
  2. Verify returned items:
    • Match to RMA
    • Check quantities
    • Inspect condition
    • Document damages
  3. Update RMA status

Step 4: Quality Inspection ​

  1. Detailed inspection:
    • Functionality test
    • Cosmetic check
    • Completeness verification
    • Resale evaluation
  2. Decision:
    • Accept return
    • Partial credit
    • Reject return
    • Request more info

Step 5: Process Resolution ​

Based on inspection:

  • Full Refund: Original payment method
  • Partial Credit: Deduct fees/damage
  • Exchange: Ship replacement
  • Repair: Send to service
  • Reject: Return to customer

How to Create Credit Notes ​

From Return ​

  1. Open approved RMA
  2. Click Create Credit Note
  3. System populates:
    • Customer details
    • Returned items
    • Amounts
    • Tax reversal
  4. Review and validate

Direct Credit Note ​

  1. Navigate to Sales → Credit Notes
  2. Click New Credit Note
  3. Select customer
  4. Choose credit type:
    • Product return
    • Price adjustment
    • Service credit
    • Goodwill gesture
  5. Enter details and save

Credit Application Options ​

  • Refund: Return payment
  • Apply to Invoice: Reduce balance
  • Customer Credit: Future use
  • New Order: Immediate use

How to Handle Exchanges ​

  1. Create RMA for return
  2. Link exchange order:
    • Same value: Direct swap
    • Higher value: Charge difference
    • Lower value: Issue credit
  3. Process both transactions:
    • Receive return
    • Ship replacement
    • Track separately
    • Link in system

How to Manage Restocking ​

Restocking Decision Tree ​

  1. Resalable Condition

    • Return to stock
    • Update available quantity
    • No value adjustment

  2. Minor Damage

    • Create B-stock location
    • Adjust value
    • Sell as open-box

  3. Major Damage

    • Write off inventory
    • Vendor claim if applicable
    • Disposal process

  4. Repackaging Needed

    • Service center queue
    • Track costs
    • Return when ready

How to Track Return Metrics ​

Key performance indicators:

  1. Return Rate

    • By product
    • By category
    • By customer
    • By reason

  2. Processing Time

    • Request to RMA
    • Receipt to resolution
    • Total cycle time

  3. Financial Impact

    • Return costs
    • Restocking fees
    • Write-offs
    • Recovery rate

Advanced Features ​

Return Policies ​

Policy Configuration ​

  1. Go to Settings → Returns
  2. Create policies:
    • Standard: 30 days
    • Extended: 60 days
    • No return: Final sale
    • Conditional: With receipt
  3. Assign to products/categories

Automated Enforcement ​

  • Check return window
  • Calculate restocking fees
  • Apply policy rules
  • Flag exceptions

Warranty Management ​

Warranty Tracking ​

  • Product registration
  • Warranty periods
  • Coverage types
  • Claim history
  • Vendor coordination

Warranty Claims ​

  1. Verify coverage
  2. Create claim
  3. Coordinate repair/replace
  4. Track costs
  5. Bill vendor if applicable

Vendor Returns ​

For defective products:

  1. Aggregate returns
  2. Create vendor RMA
  3. Prepare shipment
  4. Track claim
  5. Receive credit/replacement

Best Practices ​

Customer Communication ​

  • Clear return policy
  • Quick RMA generation
  • Status updates
  • Transparent process
  • Timely resolution

Operational Efficiency ​

  • Streamline receiving
  • Quick inspection
  • Automated routing
  • Batch processing
  • Clear procedures

Financial Control ​

  • Accurate costing
  • Proper GL posting
  • Tax compliance
  • Audit trail
  • Recovery tracking

Prevention Strategies ​

  • Quality control
  • Accurate descriptions
  • Better packaging
  • Customer education
  • Root cause analysis

Configuration ​

Return Settings ​

Navigate to Settings → Sales → Returns:

  • RMA Numbering: RMA-YYYY-00001
  • Default Policy: 30 days
  • Restocking Fee: 15%
  • Inspection Required: Yes/No
  • Auto-approve Amount: $100

Reason Codes ​

Set up hierarchical reasons:

  1. Main category
  2. Specific reason
  3. Required details
  4. Action mapping
  5. Reporting groups

Approval Workflows ​

Configure approvals for:

  • High-value returns
  • No-receipt returns
  • Damaged items
  • Policy exceptions
  • Goodwill credits

Integration Points ​

Connected Processes ​

  • Customer Service: Case management
  • Warehouse: Receiving/inspection
  • Accounting: Credit posting
  • Inventory: Stock updates
  • Quality: Defect tracking

External Systems ​

  • Carrier return labels
  • Payment gateways
  • Vendor portals
  • Service centers
  • Customer portal

Troubleshooting ​

Common Issues ​

Cannot create RMA

  • Check return window
  • Verify order status
  • Review policy
  • Check permissions

Credit note errors

  • Verify tax calculation
  • Check GL accounts
  • Review approval
  • Confirm amounts

Inventory not updating

  • Check inspection status
  • Verify location
  • Review posting rules
  • Check permissions

Refund processing failed

  • Verify payment method
  • Check gateway status
  • Review amount limits
  • Contact processor

INFO

This completes the Sales module documentation. For FAQ sections covering common questions about sales processes, see Sales FAQ.

Angage ERP Documentation

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