Generic Business Example

A computer company sells a laptop computer with a six-month warranty to customer 123. Customer 123 calls three months later because the laptop computer is broken. The computer company creates an RMA, which automatically creates a sales order and purchase order. The company uses the sales order to ship out a new computer and the purchase order to track the receipt of the broken computer. The computer company's policy to not bill the customer if the broken computer is received within 20 days. After 20 days, the customer is billed for the new computer. The customer returns the broken laptop computer within 20 days, so the sales order is canceled when it is ship confirmed.

This example provides a single tracking transaction and allows the company to relate a sales order and purchase order to the transaction for reference.