Establishing Return Type Codes and Restocking Fees

To define return type codes and restocking fees, use the Return Type Codes and Restock Fees components.

This section discusses how to define return type codes and restocking fees.

Page Name

Definition Name

Usage

Return Type Codes Page

RMA_RETURN_TYPE

Define the actions that returned goods initiate.

Restock Fees Page

RMA_RSTK_SET

Define restocking fees.

Use the Return Type Codes page (RMA_RETURN_TYPE) to define the actions that returned goods initiate.

Material returns necessitate a variety of follow-up actions depending on the reason for the return and the condition of the returned goods. You may want to immediately replace the order if the product is damaged in shipment or credit the customer for goods that were sent in error.

Field or Control

Definition

Sales Order Action

You can have RMAs automatically initiate creation of a replacement sales order for goods that are returned. To determine if the RMAs referencing the return type will initiate the replacement sales order process, select a sales order action:

Note: Replacement sales orders are created in a Pending status.

Replace Prior to Receipt: A replacement sales order is automatically created upon completion of the RMA if the RMA line is saved with a status of Open. The order is created for the same product, unit of measure (UOM), and quantity that the customer returns. The order lines or schedules are priced according to current list prices less a standard discount determined by the order group, if applicable.

Replace After Receipt: A replacement sales order is automatically created upon receipt of the returned goods. The order is created for the same product, UOM, and quantity that the customer returns. The order lines or schedules are priced according to current list prices less a standard discount determined by the order group, if applicable.

Unknown: When you enter the RMA, you have not decided the sales order action. You can change the action later.

No Action: The returned goods are not replaced. No replacement sales order is created.

Order Group

Select an order group to associate with the replacement sales order if you choose to have one created. The standard discount that is associated with the order group, if one exists, is used as the price of the replacement goods. If you select Unknown or No Action, this field is unavailable. You can use order groups to create a no-charge replacement order.

Note: To price the replacement order, priced, click the Calculate Price button from the order header, line, or schedule or save the order.

Credit Action

RMAs can also initiate the creation of a credit memo for the customer who is returning merchandise. Select an action for this return type. All RMAs that reference this return type will handle returned material credits in the manner that you indicate here:

Issue Credit Now: The system generates a credit memo upon completion of the RMA, if the RMA line is saved with a status of Open.

Issue Credit Upon Receipt: The system generates a credit memo upon receipt of the returned goods.

Unknown: When you enter the RMA, you have not decided whether to request credit. You can change the credit action later.

No Action: The customer is not credited at any time for the returned goods.

Ship Via, Carrier ID, and Freight Terms Code

The values that you select are the defaults that an RMA uses when it references the return type code.

Use the Restock Fees page (RMA_RSTK_SET) to define restocking fees.

In addition to issuing a credit memo or replacing returned goods, you may want to charge customers for return restocking fees. The restocking fees are either a flat amount per return or a percentage of the returned material selling price. These fees are associated with a reason code in a one-to-one relationship. You can determine which customers are normally charged restocking fees on the General Information - Sold To Options page.

Field or Control

Definition

Reason Code

You must already define reason codes with a Returned Material Authorization type on the Reason Code page.

Start Date

Enter the date on which the restock fees first become effective. You can apply multiple fees per reason code for a given period.

Percent/Amount Type

You can charge a flat amount for a returned quantity or base restocking fees on a percent of the returned material's value. Enter the appropriate value in the field to the right of the Percent option.

Currency Code

If you select Amount, you can select a currency code.

Total Flag

Select to have the flat amount or percentage of the restocking fee applied against the total order, not the fee applied to each RMA line individually. You can apply only one total order restocking fee per RMA. Restocking fees are passed to PeopleSoft Billing, where the system adjusts the credit memo by the amount of the restocking charges.

Note: You must associate an Order Management business unit with a PeopleSoft Billing Business Unit (on the Order Management Definition - Order Management Setup page) and define a restocking product ID (on the Accounting and Billing page) for PeopleSoft Billing to process restocking fees. If you are returning to an Inventory business unit and have the business unit definition set up, the system uses the defaults from the Inventory business unit.