Documentation

Supplier Returns (RMA) Guide

Return defective, damaged, or excess goods to suppliers and track credit notes.

Watch: Supplier Returns (RMA) Guide (6 min)

What is a Supplier Return?

A Supplier Return (also called RMA - Return Merchandise Authorization) is the process of sending goods back to a supplier. This typically happens when items are defective, damaged during shipping, wrong items were delivered, or excess inventory needs to be returned. The supplier then issues a credit note or replacement.

Supplier returns list showing all RMAs
View and manage all supplier returns
RMA Number

Each return is assigned an RMA number (e.g., RMA-20241209-0001) for tracking. Some suppliers require you to obtain an RMA number from them before shipping returns.

Return Reasons

Common supplier return reasons
Select the appropriate reason for returning goods
Reason Description Common Resolution
Defective Item doesn't work as expected Replacement or credit
Wrong Item Supplier sent incorrect product Correct item shipped, return original
Damaged Item damaged during shipping Credit note, insurance claim
Excess More items received than ordered Return excess, credit note
Expired Items arrived expired or near expiry Full credit, replacement
Quality Issue Items don't meet quality standards Inspection, credit or replacement
Other Any other reason Per supplier agreement

Supplier Return Workflow

Supplier return workflow
Supplier returns progress through these stages
  1. Create Return
    Status: Draft
    Create a new supplier return, select the supplier, warehouse, and optionally link to the original PO or GRN.
  2. Add Return Items
    Status: Draft
    Add items to return with quantities, prices, and return reasons.
  3. Submit for Approval
    Status: Submitted
    Submit the return for manager approval (if required by settings).
  4. Approve or Reject
    Status: Approved or Rejected
    Manager reviews and approves or rejects with reason.
  5. Ship to Supplier
    Status: Shipped
    Pack and ship items to supplier. Enter tracking number and carrier. Stock is reduced.
  6. Complete
    Status: Completed
    Once supplier confirms receipt and issues credit, mark as complete and record the credit note.

Creating a Supplier Return

Animated demo of creating a supplier return
Creating a new supplier return step by step
  1. Navigate to Supplier Returns
    Go to Inventory > Supplier Returns from the navigation menu.
  2. Click "Create Return"
    Open the new return form.
  3. Select Supplier
    Choose the supplier you're returning goods to.
  4. Select Warehouse
    Choose where the return items are located.
  5. Link to GRN (Optional)
    If returning items from a specific receipt, link to the GRN:
    • This auto-populates item details
    • Provides audit trail back to original purchase
    • Helps with supplier dispute resolution
  6. Set Return Date
    Date the return is being initiated.
  7. Add Notes
    Document any relevant information about the return.
  8. Save
    The return is created in Draft status.

Shipping the Return

Animated demo of shipping a supplier return
Marking a return as shipped
  1. Ensure Approved
    Return must be in "Approved" status before shipping.
  2. Click "Ship"
    Open the shipping form.
  3. Enter Shipping Details
    • Shipped Date: When items were sent
    • Carrier Name: Shipping company (e.g., FedEx, UPS)
    • Tracking Number: Shipment tracking ID
  4. Confirm Ship
    Click confirm. This action:
    • Creates a stock movement (Purchase Return type)
    • Reduces on-hand quantity
    • Changes status to "Shipped"
Stock Impact

Shipping a return immediately reduces your on-hand stock. Ensure items are actually shipped before marking as shipped in the system.

Status Reference

Status Badge Description Actions
Draft Draft Return being prepared Edit, Add Items, Submit, Cancel
Submitted Submitted Awaiting approval Approve, Reject
Approved Approved Ready to ship Ship, Cancel
Rejected Rejected Not approved Edit, Resubmit
Shipped Shipped Sent to supplier Complete
Completed Completed Credit received View only
Cancelled Cancelled Return cancelled View only

Troubleshooting

Cannot Find Product to Return

  • Ensure the product was received from this supplier
  • Check if linked to the correct GRN
  • Verify product is active in the system

Credit Amount Differs from Expected

  • Supplier may apply restocking fee
  • Price may have changed since purchase
  • Partial credit for damaged items
  • Contact supplier for clarification

Next Steps

Procurement

Review purchase orders and GRN for returns.

Stock Movements

See return transactions in movement history.