Difference Between RMA and Invoice Credit Memo:
Following are the key features of RMA that make it different from the Invoice Credit Memo:
- An RMA requires Authorization from the Customer before processing the Return.
- The Return Type in RMA is always Warehouse.
- RMA doesn’t update the Inventory right away.
RMA: Return Merchandise Authorisation.
In an RMA, the Return has to be first Confirmed or Authorised by the Buyer in order to initiate the refund/Credit Memo.
Workflow: Create RMA→Mark as Approved→Convert to Credit Memo→Create ASN→Receive ASN→Close ASN
- Once the RMA is created it’s in the Open status.
- The next step is to Print the RMA document and send the document to the Customer who has asked for the return.
- The “Mark as Approved” Option: Once the Approval for the Credit has been received from the Customer (the Goods gave been Received back), we can change the Status of the RMA to Approved from the “Mark as Approved” Option.
- Now the RMA can be converted to an Invoice Credit Memo. You can either Refund the amount or apply it on an invoice.
The Receiving of the Inventory is linked with the processing of the RMA.
- After the Credit Memo is generated the Inventory at this stage is lying in the “Not Available” Location.
- From the Invoice Credit Memo created through the RMA, the ASN can be generated and Received to get back the Inventory into the Available Location.
Note: The RMA will reflect on Customer info and it can also be seen in the RMA Centre.
Invoice Credit Memo – An Invoice Credit Memo is created with an Invoice number from Xoro, They can be of Direct, or of Warehouse type.
- Direct Type will add the Inventory into sellable locations.
- The warehouse Type will add the inventory on the Return or Damaged location.
Credit Memo – A Credit Memo works the same as the Invoice Credit Memo, but an Invoice is not required to create the Credit Memo.