Returned Material Authorization (RMA)
A Returned Material Authorization (RMA) is an approval from the supplier for the customer to return inventory for credit, replacement, or repair. The system creates an authorization number for the supplier to track the return of the inventory. This process is also known as Returned Goods Authorization (RGA).
When you create an RMA, you create a purchase order (to receive the old product) and a sales order (to ship a replacement). Or you can create a credit order instead of shipping a replacement product. You can indicate how the system creates purchase orders and sales orders by setting up processing options for versions of the Sales Order Entry program and the Purchase Orders program (P4210 and P4310, respectively) and specifying those versions in the Work with Returned Material Authorization program (P40051).
Service Management utilizes customer and product information that you enter once in order to operate efficient and cost-effective service processes. For example, assume that an equipment record and a base-warranty record were created when you sold a computer monitor to a customer. When the customer calls with an issue, the customer service representative (CSR) is able to resolve the issue based on previous calls with corresponding failures, analyses, and resolutions. If the CSR is unable to resolve the issue, the CSR can create a Returned Materials Authorization, so that the customer can return the faulty monitor and receive a replacement.