Drop-ship Return Flow
Setup
Define an order cycle that includes an approval action, RMA Interface, and Receivables Interface. If your business has no physical contact with returned items that are shipped directly to your supplier, the RMA Interface enables you to track the return for accounting purposes. If you choose not to account for the returned item in inventory, you need not include the RMA Interface in your order cycle. Assign the order cycle to an order type.
Entry and Booking
Enter, copy, or import a return material authorization (RMA) using standard functionality. Ensure that the order type you select includes the cycle actions discussed above. If you have agreed with your supplier that customer returns proceed directly to them, the supplier must inform you of the customer's intention to return or of the actual receipt before you enter the RMA in Oracle Order Entry/Shipping.
Approval
If the drop-ship item will ultimately be returned to your supplier, you may want to wait to process the RMA until your supplier notifies you that they accept the returned item. To control processing, you can use an order-level or line-level approval action.
RMA Interface (Conditional)
You can use the RMA Interface to adjust inventory even if your business will not receive the returned item physically.
If the returned item ships directly to your supplier and you do not want to record a logical transaction for the return, you need not run the RMA Interface or include it in your order cycle. Subsequently running the Receivables Interface credits your customer for the full amount on the RMA line.
If the returned item ships directly to your supplier and you want to record a logical transaction for the return, increment inventory by receiving the returned amount into a logical organization, so that your system records receipt but the item cannot be used accidentally by another order. Communicate the transaction to your buyer, who may enter a return in Oracle Purchasing, enter a miscellaneous transaction in Oracle Inventory, or perform a similar transaction according to how you have set up your business. This decrements inventory to indicate that your supplier has ownership of the returned item.
If your customer returns the drop-shipped item to you and you pass it to the supplier for final receipt, communicate the transaction to the buyer after you have received the returned item. The buyer may enter a return in Oracle Purchasing, enter an issue transaction in Oracle Inventory, or perform a similar action according to how you have set up your business.
If your customer returns the drop-shipped item to you and you retain it in inventory, process the RMA as you would for a standard return.
Crediting Your Customer
Run the Receivables Interface to communicate the RMA to Oracle Receivables, then use AutoInvoice to generate a credit memo for your customer.
Closing
After all lines on the RMA have completed all applicable cycle actions and after you have credited your customer, close the RMA.
See Also
Sample Order Cycles
Viewing Orders and Returns
Overview of Returns
Drop Shipments
Copying Orders
OrderImport
RMA Interface
Returns (Oracle Purchasing)
Performing Miscellaneous Transactions
Receivables Interface
Importing Invoice Information Using AutoInvoice
Closing Orders
