What do you need to know?
You can track both warranty labor and parts through the RGA process. If you receive parts back from the vendor for replacement you will receive those items through the RGA itself. If you receive checks or credit for the items, you will receive them through Vendor Debit Memos (credit) or Bank Deposits (cash). If a vendor does not approve the warranty or reduces the amount requested, update the RGA to reflect those changes. An RGA can be closed even if all the inventory items, cash or credit have not been received.
There are two types of RGAs
- Auto-Created - An RGA is automatically created when an item is marked as Warranty on a Sales Order, Service Order or POS Sales Transaction. The items are removed from stock when the items are delivered on the customer order, not when the RGA is sent.
- Manual - A manual RGA is typically created when you receive damaged goods from the vendor and/or need to return a item. It is not related to a customer transaction. The items on the RGA are removed from stock when the RGA is sent to the vendor.
Item Management - Stock Sites, Serial Numbers, RGAs and Kits
Process an automatically generated RGA
Step 1 - Mark Item as Warranty on Customer Order (Sales or Service)
Marking an item as warranty will change the retail price to $0.00 on the sales or service order.
RGA is auto-created when the item is marked as warranty and the order is saved.
- No stock movement occurs at this time.
Step 2 – Send RGA to Vendor/Manufacturer
- Go to Administration>Inventory>Return Goods Authorizations>Search RGAs.
- Right click on the RGA and select Change Status - Send.
- No stock movement occurs at this time.
Step 3 – Receive and Close RGA
RGA reimbursement can be in the form of inventory, cash, or credit. You do not have to be reimbursed by the Vendor to close the RGA. If the Vendor is not going to reimburse your company, you may close the RGA with a balance still due.
Receive replacement inventory from the vendor
You can only receive inventory items on an RGA item with a status of Sent.
- Open the Return Goods Authorization Search screen. There are several ways to open this screen.
- Go to Administration > Inventory > Return Goods Authorizations > Search RGAs.
- Got to Administration > Accounting > Return Goods Authorizations > Search RGAs.
- Use the filters to locate the RGA you want to receive.
- Right click on the RGA and select Receive Inventory from the menu that appears.
- The Receive Inventory option is only enabled if the status of the RGA is Sent.
- To change the status of an RGA to Sent, right click on the RGA and select Change Status - Send from the menu that appears.
- Highlight the RGA item that you are receiving.
- Click Add Receipt. The Receive Inventory from RGA screen appears.
- Enter the receipt.
- What type did you receive? - The Inventory Item option is automatically selected.
- Item Quantity - Enter the quantity received.•Stock Site - The inventory is added to this selected stock site.
- Comment (optional) - Add any additional comments relating to the receipt of this item.
- Click OK.
- Repeat the steps above to receive more RGA items
The following posting will occur when STOCK items are received on an RGA:
|Default Inventory asset account for the stock site associated to the RGA
The following posting will occur when NON-STOCK items are received on an RGA:
|Default COGS account for the product line associated to the item.
Receive credit from the vendor
Go to Administration > Accounting > Accounts Payable > Add Debit Memo. Check box “Is for RGA.” Click Yes to associate receipt to RGA when prompted.
The following posting will occur when credit is received from the vendor, regardless of Item Type:
Marking an RGA as “Sent” posts a debit to Accounts Receivable, so receiving vendor credit for the RGA posts the offsetting credit to the Accounts Receivable account.Receiving credit from the vendor means you create a Debit Memo in Evosus and associate it to the RGA using the “Is for RGA” checkbox. The above posting would then occur.
Receive cash or check from the vendor
Go to Administration > Accounting > Banking > Make Deposits. On the Other Cash and Checks deposits screen, enter the check information and check the “Is for RGA” box. Click Yes to associate receipt to RGA when prompted.
The following posting will occur when cash or check is received from the vendor, regardless of Item Type:
Marking an RGA as “Sent” posts a debit to Accounts Receivable, so receiving cash or check for the RGA posts the offsetting credit to the Accounts Receivable account.Receiving cash or check from the vendor means you create an “Other” type bank deposit in Evosus and associate it to the RGA using the “Is for RGA” checkbox. The above posting would then occur.
Step 4 - Invoice and Deliver Item on Customer Order (Sales or Service)
Marking items as delivered and invoiced causes inventory to be reduced.
Invoice will automatically close if it has a zero dollar balance.
Step 4 can be completed before Step 3 if you are replacing the warranty item from stock on hand.
||Default COGS account for the Product Line associated to the line item.
Unless explicitly stated, this topic documents the most recent version of Evosus Business Enterprise. If you're not using the latest version, go here to download it.
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