Guidelines for creating RMA and replacement orders.
When and what to do when the customer has received something they didn't order or is damaged or not as expected. Use the below guidance to know when to credit now and when to return no credit due as well as when to replace at no charge or charge.
Guidelines when determining what action(s) are needed for returning items or replacing items:
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Notes are to be added to the original order, replacement order, and RMA. Add to AR as needed. |
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Notes should follow this format: date, your initials, caller name, phone #, email, description of the issue, including item #s, brief item description, how you resolved the issued, original order #, replacement order #, RMA. Any carrier information applicable. |
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When considering under/over $80, use the collective value of all involved items. |
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In all scenarios, consider the impact of freight costs (average 15%) for the replacement, the return, and the cost (invoice amount) of the item(s). There may be times, outside the $80 rule, that a no return required may be appropriate, even though it is outside the guidelines below. These are opportunities to discuss with the supervisor for best handling protocol. |
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Credit now and credit man are left in pending until approved/credit memo received from vendor. |
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RMA worksheets are competed when processing credit nows, credit mans, cancel RMA, correct RMAs. Credit now/mans must be identified to AP for running process to issue the credit memo. |
| Provide thorough details to the customer on their role, what to expect dependent on how the return/replacement will be handled (cust pays, we issue call tag/label, issue logisource return). Use templates in HS or print letter in PS. |
| Return Material Authorization (RMA) | ||||
| Use these guidelines when handling inquiries for return, replacement. | ||||
| Reason | RMA-Reason Code | RMA-Return Type | Replacement Order Source Code | Action to take |
| Unauthorized Return | See action | See action | No repl unless specified | RMA is entered by returns. Service to contact customer for more information. Update return type and reason code on header and lines. Put RMA in open or cancel if reship is actioned. |
| Incorrect item shipped/received, item was not ordered or invoiced & total cost of items is greater than $80 | SHIP | Return no credit due | SHIP | Return no credit due, replace correct items at charge. Complete billing worksheet (credit & rebill) to remove items from the invoice that were not received by customer. |
| Overage/Extra - received item but did not order | N/a or SHIP | N/a or SHIP | No repl unless specified | Less than $80 No Return Required. Customer may keep or donate. Greater than $80 Create RMA, no credit due. If customer wants to "keep", create bill only. If customer is missing an item that is on their invoice, credit & rebill to remove missing item, create replacement order at charge. |
| Incorrect data entered - item#, quantity, price, or address on the original order, quote, or replacement order | CSC, ENTRY, SALES | Credit Now/Return Credit Due | CSC, ENTRY, SALES | All items collectively less than $80 - no return required, credit now to credit incorrect item, replace correct item(s) at charge. Greater than $80 - create RMA credit due replace correct item at charge. |
| Customer elects not to keep, ordered incorrect item or over ordered | CUST | Return credit due | No repl unless specified | Create RMA for credit due. Watch/Submit for refund or note AR if credit is to be applied to x order/invoice. |
| Defective merchandise under $80 | N/A | N/A | DEF | No return required. Replace at no charge. Use note type EXPLAIN. |
| Defective merchandise over $80 | DEF | Return credit due | DEF | Create RMA for credit due. Replace at charge. Use note type EXPLAIN. |
| Damaged product(s) under $80 | DMGD | N/A | DMGD | No return required. Replace at no charge. File claim if within time frame and over $25. Use note type EXPLAIN. |
| Damaged product(s) over $80 | DMGD | Return credit due, charge repl | DMGD | Create RMA for credit due. Replace at charge. File claim if within time frame. Use note type EXPLAIN. |
| Damage over $80 - no carton | DMGD | Return credit due, charge repl | DMGD | Create RMA for credit due. Replace at charge. Create label/pickup as needed; have customer use replacement carton. *do NOT file claim. Use note type EXPLAIN. |
| Damaged product(s) from Manufacturer (any value) |
DMGD | Credit Now | DMGD | Repl at cost. File claim with carrier if within the time period; assign to salvage. |
| Lost in transit (carrier) {any value} | LOST | Credit Now | LOST | Issue credit now for lost items and replace at charge. File claim with carrier. |
| Not as expected - catalog or website picture, image, price, or description that does not meet customer expectations | CUST or EXPD | Credit Now or Return credit due | No repl unless specified | CUST - if correct item details are noted, return for credit at customer's expense. EXPD - if details are not listed or incorrect (Kaplan issue), less than $80: credit now, no return required; Greater than $80, return credit due. |
| Kaplan conferences or samples returned | HOUSE | Return no credit due | No repl unless specified | Return at no credit due, samples are typically no charge. |
| Catalog misprint - item has incorrect price, picture, or description in catalog or website | MISP | Credit Now or Return credit due | MISP | Less than $80 create credit now - no return required; Greater than $80, create return for credit. |