How to Handle RMA Returns

This guide explains how to create, authorize, and complete Return Merchandise Authorizations (RMAs) in PAX, as well as how to generate return shipping labels. It also covers how returns affect inventory and accounting, and includes answers to common questions.

1. Overview

The PAX Returns module allows you to:

• Create and authorize RMAs
• Track returned quantities
• Generate return shipping labels
• Receive returned items
• Automatically post the appropriate accounting and inventory adjustments

2. Creating an RMA

Step 1 - Open the Returns Module

Navigate to Shipping & Receiving → Returns.

Step 2 - Select the Order

The module displays invoices from the last six months by default. Choose the order you want to return and click Select.

Step 3 - Enter Return Quantities

In the RMA screen:

• Enter the quantity the customer is returning and a reason for return (optional).
  • You may return full or partial quantities.
  • Partial returns are useful for defective or damaged items.

Step 4 - Create the RMA

Click Create RMA. This generates a new RMA record but does not post any GL entries yet.

3. Viewing and Managing Open RMAs

After creation, the RMA appears in the Open Returns tab.

From here you can:

• View the RMA number
• Send the RMA number to the customer (if required)
• Generate a return label
• Complete the RMA once items are received

4. Generating a Return Label

PAX provides two ways to generate a return label.

Option A - From the RMA

• Navigate to Returns → Open Returns.
• Select the RMA.
• Scroll to the bottom and choose Print Return Label.
• PAX will assume the same weight and dimensions as the original shipment.
  • You may adjust these if the customer is using different packaging.
• Click Generate Return Label.

The label prints on a standard sheet of paper and can be taped to the box. Customers can drop the package at a FedEx location or hand it to a FedEx driver, as an example.

Service Type: The default is FedEx Ground, but you can change the service type as needed.

Reference Field:

• Labels printed from the RMA module show the RMA number.
• Labels printed from the shipping module show the Sales Order number.

Option B - From the Shipping Module

If you don't want to create an RMA yet:

• Go to Shipping → Recent Shipments.
• Select the shipment.
• Click Print Return Label.
• Adjust weight/dimensions if needed.
• Generate the label.

This is useful for quick, one-off return label requests.

5. Completing an RMA

Once the returned items arrive:

• Go to Returns → Open Returns.
• Click View/Complete on the RMA.
• Confirm the received quantities.
• Click Complete RMA.

What Happens When You Complete an RMA

PAX automatically posts the necessary accounting and inventory entries:

• Revenue Reversal
  • Debits the Sales Returns (contra-revenue) account
  • Credits Accounts Receivable (if unpaid)
• Inventory Restoration
  • Increases the Inventory account
  • Credits the Cost of Inventory Sold account

Lot-Tracked Items

If the item uses lot numbers, PAX automatically assigns the same lot number that was originally shipped. A different lot number can be selected, however.

Unpaid Invoices

If all items on an unpaid invoice are returned, PAX automatically voids the invoice.

6. Frequently Asked Questions

1. When can I create a return for a customer?

You can create a return after any order has shipped. The Returns module shows invoices from the last six months. If you need older invoices, contact support for the extended range.

2. What's the difference between authorizing and completing a return?

You may leave an RMA open if items will arrive in multiple shipments.

3. Can I generate a return label for my customer?

Yes. You can generate a return label:

• From Open Returns (after authorizing an RMA)
• From Recent Shipments (without creating an RMA)

Weights and dimensions default to the original shipment but can be edited.

4. What happens to inventory and accounting when I complete a return?

PAX:

• Restores inventory quantities
• Restores inventory value
• Reverses revenue through the sales returns account
• Adjusts A/R if the invoice is unpaid
• Voids the invoice if all items are returned and unpaid

5. Can I enter a return reason and track which items are being returned?

Yes. When authorizing an RMA:

• Enter the return reason (e.g., defective, damaged, wrong item).
• Select specific line items and quantities.
• Track partial returns across multiple receipts.

6. Example: Tracking a Partial Return

If an RMA is partially received:

• The RMA remains open
• Received quantities are recorded
• Remaining quantities stay pending
• Once all items arrive, you can complete the RMA