RMA is a non-posting transaction.
The return process results in a credit or a refund is dependent on three things:
1. Based on the return authorization form is selected in the Custom Form field on the authorization.
- Standard Return Authorization – Credit – A return using this form generates a credit memo for the returned item. The credit memo can later either be applied to an account balance or refunded to the customer.
- Standard Return Authorization – Cash – A return using this form generates a refund for the returned item. A cash form return authorization cannot later be processed as a credit memo.
2. Setting for the Refund in Advance of Return preference.
Enable this preference to allow a purchase to be refunded before the item is returned.
In some cases, companies prefer to wait until a return is actually received back into stock before crediting or refunding an amount to the customer. However, if we enable this preference, we can issue credit or a refund for the item before it is received.
3. If the Advanced Receiving feature is enabled.
- If we have enabled the Advanced Receiving feature, we must credit a return before we can refund a return.
- First, a credit is created from the return authorization in the authorized amount.
- Next, from the credit, a refund is created, also in the authorized amount.
- If we do not use the Advanced Receiving feature, we can create a refund directly from an authorization without creating a credit memo first.
- Whether Advanced Receiving is enabled or not, we can always enter standalone credit memos that record credit on a customer account that can be applied toward their account balance.