Return Material Authorization (RMA)
A guide to managing customer returns in Oracle Order Management.
RMA Cycle Overview
The Return Material Authorization (RMA) cycle is a fundamental business process for managing customer returns. It provides a structured, auditable workflow for handling the return of goods, whether for a refund, replacement, or repair. An efficient RMA process is critical for maintaining customer satisfaction, accurately tracking returned inventory, and ensuring correct financial crediting. This cycle is managed primarily within Oracle Order Management and is tightly integrated with Inventory and Accounts Receivable.
Case Study: Returning a Defective Product
Key Prerequisites
Define RMA Order Type
Create an Order Type in OM specifically for returns, with an associated RMA workflow.
Setup and Maintenance > Manage Order Management ParametersDefine Return Reasons
Set up valid return reason codes in Lookups, which are mandatory for all return lines.
Setup and Maintenance > Manage Order LookupsItem Attributes
Ensure the item to be returned has the 'Returnable' attribute checked in the Item Master.
Product Information Management > Manage Items > Sales and Order ManagementWorkflow Setup
Ensure the 'Line Flow - Return for Credit with Receipt' (or similar) workflow is assigned to the return line type.
Setup and Maintenance > Manage Orchestration Process DefinitionsRMA Process Flow
Create RMA Order
Enter Return Line Details
Book RMA Order
Receive Returned Goods
Create Credit Memo
Step-by-Step Breakdown
Create RMA Order
Actor: Order Entry Clerk / CSR | Module: Oracle Order Management
The process starts when a customer requests to return an item. A sales order is created with a special "Return" or "RMA" Order Type. Referencing the original sales order is highly recommended to automatically pull in item and pricing details for an accurate credit.
Example: A customer reports a defective product. The CSR creates a new sales order with an "RMA" order type and references the original order number. This pulls in the product and its original price.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Order Management > Order Management > Create Order
Key Actions:
Select the Business Unit and Order Type for returns. Add the item and reference the original order.
Enter Return Line Details
Actor: Order Entry Clerk / CSR | Module: Oracle Order Management
On the sales order line, you specify the item and quantity being returned. You must also provide a "Return Reason," which is mandatory for RMA lines and helps with quality control and reporting.
Example: The CSR enters the quantity being returned and selects "Defective Product" from the list of available Return Reasons.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Order Management > Order Page > Lines Section
Key Actions:
On the return line details, provide a Return Reason.
Book RMA Order
Actor: Order Entry Clerk / System | Module: Oracle Order Management
Booking the order validates it and makes it official. The system generates a unique RMA number that the customer will use to ship the goods back. At this point, the order line status becomes "Awaiting Return".
Example: The CSR books the order. The system confirms all details are valid and the RMA status changes to "Awaiting Return". The customer is given the RMA number to include with their shipment.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Order page > Click "Submit" button.
Key Actions:
Submitting the order initiates the return orchestration process. The line status becomes "Awaiting Receiving".
Receive Returned Goods
Actor: Warehouse / Receiving Staff | Module: Oracle Inventory / Receiving
When the physical goods arrive at the warehouse, staff perform a receipt against the RMA number. This transaction increases the on-hand inventory. The goods can be inspected and placed in a specific subinventory (e.g., "Returns" or "Inspect").
Example: The returned product arrives. Warehouse staff find the RMA number and perform a receipt in Oracle. The defective item is placed in the "Inspection" subinventory for analysis.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Execution > Receiving > "Receive Expected Shipments" task
Key Actions:
Search for the RMA number under "Expected Shipments", enter quantity, and create the receipt.
Create Credit Memo
Actor: AR Accountant / System | Module: Oracle Receivables
Once the return is received, the "Autoinvoice" program is run. It imports the RMA data from Order Management and creates a credit memo in Accounts Receivable, which reduces the customer's outstanding balance or issues a refund.
Example: The "Autoinvoice" program runs and detects the completed RMA receipt. It automatically generates a credit memo in AR to refund the customer for the defective product.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Scheduled Processes > Schedule New Process > "Import AutoInvoice"
Key Actions:
Run the Import Autoinvoice process for the appropriate Business Unit to generate the credit memo.