Question

RMA Process for Quickbooks Online

Forum|Forum|5 years ago
January 13, 2021
2 replies
22 views

To All,

Can someone familiar with Quickbooks Online help explain returns for two different scenarios?

1) How do I receive a product back from a customer that will be submitted to the vendor under warranty?

I would like the system to reflect on the customer account that I have received the item back (although it is defective so I do not want it to go back into inventory).

Once I have the return recorded in the system against the customer name how do I then record the return to the vendor? Is there a way to have a "pending" return to the vendor until they accept and process it on the vendors' side?

After I have recorded the return to the vendor, they have accepted the return, and now sent me back the product how is that recorded as well?

2) Can you confirm the following.... If a customer makes a purchase for an item, pays for it, but then returns it (and it is NOT defective and can be resold) I would want it to go back into inventory.

I believe I would create a credit memo with the same part number showing it was returned to us. This should put the part back into inventory and give the customer a credit to use against another purchase in the future. Now, should they want a refund instead I would skip the credit memo and just do a refund receipt, correct?

Thank you!!!

Sara

QuickBooks Online

M

Mark_R

Moderator

I want to make sure all of your concern is addressed, @Custom Sound.

Let me discuss this one by one and help you record it in your QuickBooks Online (QBO).

When you record a returned item that you don't want to go back to your inventory, you can create a check and post it directly to the income account used for the item. Here's how:

Click the + New button, then select Check.
Select the customer from the Payee drop-down.
Go to the Category details section and select the income account used for the item.
Enter the amount and necessary information.
Click Save and close.

I'm adding this article for more details: Create and record checks in QuickBooks Online.

Then, you can now create a vendor credit to record the return to the vendor. And there isn't an option to make it pending until the vendor processed it.

Also, for the returned items that you should go back to your inventory, you're on the right track on recording it by creating a credit memo or a refund receipt. For more guidance, feel free to read this article: Record a customer refund in QuickBooks Online.

That's it! Please let me know how it goes in the comment section below. I'm only a post away if you have any follow-up questions. Have a good one.

C

Custom SoundAuthor

Thank you for your reply, but I am not 100% sure that is the way to proceed. The part I sold is ALP-SW10D4. Since I don't want the item to go back to inventory and I am providing the customer with a replacement product off my shelf couldn't I proceed through the steps below... Please note I will be sending in the defective product to my vendor for a replacement to replenish my shelf.

1) Create an invoice to the customer with the part on it (ALP-SW10D4) with the value I would normally charge ($130). This will take the ALP-SW10D4 out of the inventory that I am providing to the customer as a replacement for their defective product.

2) Create a new part in the system called ALP-SW10D4-W that is NON-inventory. This part will have the same cost ($69) and sell price as the inventoried item ALP-SW10D4 ($130).

3) Create a customer credit memo and list the part ALP-SW10D4-W. This will show the system that we are returning this part, but not add it to inventory. I will list the value of the credit memo for this part as the same that I charged the customer on their invoice ($130).

4) Receive payment from the customer which will allow me to take the invoice I created (for the replacement part) and the credit memo to apply against each other to make it a wash.

5) Create a vendor credit memo with the ALP-SW10D4-W part. This will allow me to track the part that is being sent back to the vendor. I will list the value of the credit memo as the cost that they originally sold me the part ($69).

6) Once the vendor has received my return they will invoice me for ALP-SW10D4 at the cost ($69) and I will apply the vendor credit memo against this invoice to make the amount paid as $0.

***Please note that the part the vendor will list on their invoice is ALP-SW10D4 and NOT with the -W behind it. If I understand correctly I would want to use this part when I receive the replacement product back in. The reason for doing so is because it would add the REPLACEMENT part back to inventory, which is what I want as I am needing to replenish my shelf and resell that part to another customer. ***

If the vendor does not charge me for the new replacement part sent out under warranty I will go back in and adjust the credit memo to zero. Some vendors will charge the invoice (assuming we have created a credit memo in the system and others do not).

Handling the return this way will allow me to run a report in the future on warrantied parts.

Thoughts? I think it will work but would like a review from someone that has handled this situation previously. Thank you!!!

Sara

Fiat Lux - ASIA

Level 14

@Custom Sound

As another option, consider having an inventory management app with a return management feature.

C

Custom SoundAuthor

Can you explain more about the inventory management app with a return management feature? Is this something that could be used within Quickbooks online for inventory management? Thank you!

Fiat Lux - ASIA

Level 14

Once you are using an inventory management app, it will replace the feature in your QBO account. Company has acquired one app last year and you should explore it.

https://go.tradegecko.com/register?code=fiat-lux

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