When we track vendor returns using authorizations, we know the status of each return and we can track accurate information about each return we process. The vendor return workflow includes obtaining Return Materials Authorization (RMA) from the vendor, then processing the return in NetSuite to track information about each return.
The vendor return process:
• Entering the authorization – records information about the return
For example, records the item number and description, quantity being returned, value ofthe return, and the vendor RMA number.
• Approving the authorization – approves the return of the item to the vendor
• Shipping the return – verifies that the item has been shipped to the vendor
• Crediting the return – logs a refund or credit from the vendor for the returned item
Using return authorizations also gives our shipping department the information they need to match items to vendor return forms as they send shipments. Then, our accounting department knows what is expected from each vendor, such as a credit, refund, or replacement item.
When we want to return an item to a vendor, complete the information about a vendor return authorization form including the following:
• The item to be returned
• The quantity of each item being returned
• The amount to be credited or refunded to us upon return of the item
A vendor return authorization is a non-posting record of an item we intend to ship back to the vendor it was purchased from. Each vendor return authorization we enter is assigned a unique return number that enables us to track the entire return process.
This is considered a purchase transaction and is non-posting.
