Return Authorization (RA) Process
The following is the procedure used to create a Return Authorization (RA). The RA is used by each warehouse to receive returned items into inventory and is used by Accounting to properly credit the customer’s account.
*Note- The proper mix of upper and lower-case letters should always be used throughout NetSuite as well as Tabbing through all fields.
There are two separate routes you can take to create an RA:
NS Path 1: Transactions > Customers > Issue Return Authorizations– Use this route for RA’s that are not connected to a specific order. When using this route, all the information must be manually entered.
NS Path 2: On the Sales Order, click the “Authorize Return” button in the upper left-hand corner of the order. Most RAs should be connected to a specific order. When this happens, we will want to use this RA-entry process. We will go over this process below.
Once you click the Authorize Return button on the Sales Order, you will be brought to the following Return Authorization screen:
First, we will ensure all the information is filled out in the Primary Information section.
- STATUS– The RA status will default to Pending Receipt. You should not have to change this throughout the RA entry process.
- DATE– Today’s date.
- CUSTOMER– For RA’s created from the original Sales Order, this will automatically populate. For RA’s not created from the Sales Order, enter the Customer account number.
- PO #– PO # from the original Sales Order. For Blanket returns, this can be left blank.
- CUSTOMER SERVICE REP– Representative processing the RA.
- PARTNER– Will default to the Partner listed on the original Sales Order.
- MEMO– Internal notes field that can be used to describe the return. This field is not visible to the customer.
- COMMENT TO CUSTOMER– Enter as much info as you can to describe why the return is being issued. Always include the invoice number first.
Example Comments:
- Invoice: 3006390
- C/S entered and shipped 34004 but customer ordered 36006.
- Waived 20% Restocking Fee.
- Billed and shipped 100 BX but customer only ordered 50 BX.
- If the product was damaged by the carrier and a freight claim needs to be filed, be sure to add File Freight Claim in this section.***
- Carrier to return free astray.
- FedEx labels have been provided to the customer.
- LOCATION– Will default to the location the order was shipped from.
- LOCATION RETURN ADDRESS– This address should coincide with the above location.
- CREDIT MEMO REASON– Enter the appropriate Credit Memo Reason Code.
C/S Credit Memo Reason Codes
- C/S Authorized Destroy– Customer’s fault, customer ordered incorrectly, didn’t like, etc. Not worth the cost of return.
- C/S Authorized Destroy- Customer Charged Destroy Fee– Similar to the above. Not worth the cost of return, customer charged destroy fee.
- C/S Authorized Return– RMA provided to customer for return.
- C/S Authorized Return- Customer Charged Restocking Fee– RMA provided to customer but customer is charged restocking fee.
- C/S Courtesy Credit/Other– Management approval required.
- C/S Customer Service Error– Examples include: Order entry error, duplicate order, order entered under incorrect account, incorrect qty/item/shipping location entered, customer cancelled and order was not properly cancelled.
- C/S Defective from Manufacturer– Does not include damage during shipping.
- C/S Incorrect Freight Pay Code Issued
- C/S Pricing Issue
- C/S Shipment Lost/Short/Damaged by Carrier (File Freight Claim)– Shipment issue caused by carrier. Where applicable, freight claim will need to be filed.
- C/S Unauthorized Return– Customer returned without Advantus’ authorization or knowledge.
- Shipping- Shipping Error– Examples include: Shipped incorrect item(s), shipped to incorrect location, order was canceled but still shipped.
- FREIGHT PAY CODE– (To the right of LOCATION) This will pull the original freight pay code used. This can be adjusted as needed based on who is responsible for having the freight returned and the method of shipping being used.
Next, tab to the Items subtab. For RA’s created from the original Sales Order, all items in the original order will populate. For RA’s not created from a Sales Order, this is where we will add the items to be returned.
When adding, removing, or updating items, ensure that the correct quantities and prices are being shown. If we over-shipped an item but did not bill the customer for it, update the price to $0. To do this, the Price Level must be changed to Custom. This will allow for the Unit Price to be updated.
If we are charging a restocking fee, this is where it will be added. Add item “Restocking Fee” and enter the appropriate value as a negative number. (Typically, 20%)
Once all updates have been made to the Items subtab, click Save. After the RA has been saved, the RA # will be generated. *Do not click Receive.
To send the RA Via NetSuite:
- On the RA, click the Communication subtab.
- Next, click the Messages link and then click the Email button.
- Under the Recipients tab, add the appropriate e-mail address(es).
- Under the Message tab, include the message you want to send to the customer. Example below.
Once you have added the appropriate e-mail address and message, click the Merge & Send button. The RA will then be e-mailed to the customer.
A copy of the RA should also be printed and added to the Customer Service Returns Binder with all corresponding information. (BOL (Bill of Lading), POD, invoice, e-mail correspondence, etc.)
If the return requires us to create shipping labels for the customer, please ensure that under the Billing Details section (on the Create a Shipment page on FedEx’s website) that a reference is selected in the “*Your reference” field. The code used for all returns should be 58010-100-00. (Freight In Returns) Also, be sure to add the RA# in the PO no. field. Example below:
