Hello! I am surprised I didn’t find other similar discussions in here… We sell generators, gearboxes, and other types of heavy duty rebuildable equipment. When we sell a parts order for one of these items, we will tack on a core charge that will be refunded when we receive their original unit back. What’s the best way to process this? Misc. Charge? Non-stock/non-qty bearing part?
Up until today, we’ve been using a non-stock, non-qty-bearing part as a line on a sales order along with the part. Then we enter an RMA to get the used part back and they pick the CORE line from the sales order. When we physically receive the part, then we will process the RMA and issue a credit.
I’m assuming you don’t need to keep track of the ‘original units’ that come back from your customers, that’s why you’re using a non qty-bearing part. If that’s the case, why use the RMA ? Why not just do a cancellation or a misc. invoice for the credit note ?
Correct. We don’t do the rebuilds ourselves, we send them back to their original manufacturer. We’re just the middleman, essentially. As far as I know, there are no quantity transactions for this return at any step of the process… (why? I am not sure).
I think they use the RMA because it gives the ability for the Service/Warranty Administrator to control when credits are issued upon receipt. I don’t think she’d be able to do that without manually calling/emailing our AR person to do it.