RMA and Returns Allowances

Yahoo Archive
1
I've never tested this (so like many things on v8, it probably doesn't work as advertised) - but my understanding is that reporting the RMA returned material repair job labor as "Rework" labor shuttles those costs off to a seperate g/l account (if you have set up your accounts to do this).

IF that works, you still have the problem for accounting for any additional inventory asset consumed in order to complete the repair. Vantage supports an 'added material' flag when manually editing job details and addin additional materials.

While I have no illusions this natively impacts any cost accounts, you might be able to leverage this to create a good enough process to collect material cost of quality failures incurred from RMAs. - Essentially just writing a report to find and total 'added material' costs and then making an adjustment from the primary material COGs account to an RMA Mtl COGs account.

Rob Brown

--- On Thu, 6/5/08, Stan Chmura <schmura@...> wrote:

From: Stan Chmura <schmura@...>
Subject: RE: [Vantage] RMA and Returns Allowances
To: vantage@yahoogroups.com
Date: Thursday, June 5, 2008, 10:49 AM






Yes we do that. I should have been a bit more specific. That method shows
the cost of each individual return on the production detail of the jobs used
for the repairs. However in analysis, the accountants see a number
representing the original value of the returns for say a month's time. And
that may show $100,000 total revenue but Returns and Allowances of say
$10,000. That 10K of returned revenue will be recaptured once all the parts
are repaired and re-invoiced. Short of picking out all those return jobs
and adding up the costs on a calculator, how do you tally up all the
additional costs for the returns of that month from all of those jobs? Or,
how much more did it cost me this month to get that 10K of revenue back?





_____

From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On Behalf Of
Edward F. Fox, Jr.
Sent: Thursday, June 05, 2008 10:31 AM
To: vantage@yahoogroups .com
Subject: RE: [Vantage] RMA and Returns Allowances

Vantage can do that.

When you process the RMA, dispose of it to a job. The original cost will go
with the material(returned item) and then additional labor+OH can be
applied. Then you can put it in stock or ship it back to the customer.

Edward F. Fox, Jr., CPA

Controller

Maxson Automatic Machinery Company

Phone 401-596-0162 Fax 401-596-1050

www.maxsonautomatic .com <http://www.maxsonau
<http://www.maxsonau tomatic.com/> tomatic.com/ >

_____

From: vantage@yahoogroups <mailto:vantage% 40yahoogroups. com> .com
[mailto:vantage@ yahoogroups <mailto:vantage% 40yahoogroups. com> .com] On
Behalf Of
stanchmura
Sent: Thursday, June 05, 2008 10:19 AM
To: vantage@yahoogroups <mailto:vantage% 40yahoogroups. com> .com
Subject: [Vantage] RMA and Returns Allowances

I am looking for a way to track the cost of returns. Vantage RMAs will
show a return at the value of the original sale but does not show the
additional cost(s) incurred as a result of the return. i.e an item is
sold at $100; its COS is say $50. When it's is returned by the
customer as defective via RMA, $100 is written to Returns/Allowance
account. The part is then repaired at an additional cost of say $25 so
the COS for that sale now becomes $75. The COST of the return then is
the additional $25. In other words, that additional $25 of cost would
not have been inccurred if the customer did not have to return the
item. Our accountants want to know how much additional cost is
incurred as a result of "not getting it right the first time". Since
there is no canned report in Vantage to show this, I was curious if any
others are tracking this cost and how.
Any suggestions would be greatly appreciated.

Thanks!

[Non-text portions of this message have been removed]


[Non-text portions of this message have been removed]
2
I am looking for a way to track the cost of returns. Vantage RMAs will
show a return at the value of the original sale but does not show the
additional cost(s) incurred as a result of the return. i.e an item is
sold at $100; its COS is say $50. When it's is returned by the
customer as defective via RMA, $100 is written to Returns/Allowance
account. The part is then repaired at an additional cost of say $25 so
the COS for that sale now becomes $75. The COST of the return then is
the additional $25. In other words, that additional $25 of cost would
not have been inccurred if the customer did not have to return the
item. Our accountants want to know how much additional cost is
incurred as a result of "not getting it right the first time". Since
there is no canned report in Vantage to show this, I was curious if any
others are tracking this cost and how.
Any suggestions would be greatly appreciated.

Thanks!
3
Vantage can do that.

When you process the RMA, dispose of it to a job. The original cost will go
with the material(returned item) and then additional labor+OH can be
applied. Then you can put it in stock or ship it back to the customer.


Edward F. Fox, Jr., CPA

Controller

Maxson Automatic Machinery Company

Phone 401-596-0162 a Fax 401-596-1050

www.maxsonautomatic.com <http://www.maxsonautomatic.com/>



_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
stanchmura
Sent: Thursday, June 05, 2008 10:19 AM
To: vantage@yahoogroups.com
Subject: [Vantage] RMA and Returns Allowances



I am looking for a way to track the cost of returns. Vantage RMAs will
show a return at the value of the original sale but does not show the
additional cost(s) incurred as a result of the return. i.e an item is
sold at $100; its COS is say $50. When it's is returned by the
customer as defective via RMA, $100 is written to Returns/Allowance
account. The part is then repaired at an additional cost of say $25 so
the COS for that sale now becomes $75. The COST of the return then is
the additional $25. In other words, that additional $25 of cost would
not have been inccurred if the customer did not have to return the
item. Our accountants want to know how much additional cost is
incurred as a result of "not getting it right the first time". Since
there is no canned report in Vantage to show this, I was curious if any
others are tracking this cost and how.
Any suggestions would be greatly appreciated.

Thanks!






[Non-text portions of this message have been removed]
4
 We create an Order and a Job , thru which costs are tracked.

--- On Thu, 6/5/08, stanchmura <schmura@...> wrote:

From: stanchmura <schmura@...>
Subject: [Vantage] RMA and Returns Allowances
To: vantage@yahoogroups.com
Date: Thursday, June 5, 2008, 10:18 AM






I am looking for a way to track the cost of returns. Vantage RMAs will
show a return at the value of the original sale but does not show the
additional cost(s) incurred as a result of the return. i.e an item is
sold at $100; its COS is say $50. When it's is returned by the
customer as defective via RMA, $100 is written to Returns/Allowance
account. The part is then repaired at an additional cost of say $25 so
the COS for that sale now becomes $75. The COST of the return then is
the additional $25. In other words, that additional $25 of cost would
not have been inccurred if the customer did not have to return the
item. Our accountants want to know how much additional cost is
incurred as a result of "not getting it right the first time". Since
there is no canned report in Vantage to show this, I was curious if any
others are tracking this cost and how.
Any suggestions would be greatly appreciated.

Thanks!


















[Non-text portions of this message have been removed]
5
Yes we do that. I should have been a bit more specific. That method shows
the cost of each individual return on the production detail of the jobs used
for the repairs. However in analysis, the accountants see a number
representing the original value of the returns for say a month's time. And
that may show $100,000 total revenue but Returns and Allowances of say
$10,000. That 10K of returned revenue will be recaptured once all the parts
are repaired and re-invoiced. Short of picking out all those return jobs
and adding up the costs on a calculator, how do you tally up all the
additional costs for the returns of that month from all of those jobs? Or,
how much more did it cost me this month to get that 10K of revenue back?





_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Edward F. Fox, Jr.
Sent: Thursday, June 05, 2008 10:31 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RMA and Returns Allowances

Vantage can do that.

When you process the RMA, dispose of it to a job. The original cost will go
with the material(returned item) and then additional labor+OH can be
applied. Then you can put it in stock or ship it back to the customer.


Edward F. Fox, Jr., CPA

Controller

Maxson Automatic Machinery Company

Phone 401-596-0162 Fax 401-596-1050

www.maxsonautomatic.com <http://www.maxsonau
<http://www.maxsonautomatic.com/> tomatic.com/>

_____

From: vantage@yahoogroups <mailto:vantage%40yahoogroups.com> .com
[mailto:vantage@yahoogroups <mailto:vantage%40yahoogroups.com> .com] On
Behalf Of
stanchmura
Sent: Thursday, June 05, 2008 10:19 AM
To: vantage@yahoogroups <mailto:vantage%40yahoogroups.com> .com
Subject: [Vantage] RMA and Returns Allowances

I am looking for a way to track the cost of returns. Vantage RMAs will
show a return at the value of the original sale but does not show the
additional cost(s) incurred as a result of the return. i.e an item is
sold at $100; its COS is say $50. When it's is returned by the
customer as defective via RMA, $100 is written to Returns/Allowance
account. The part is then repaired at an additional cost of say $25 so
the COS for that sale now becomes $75. The COST of the return then is
the additional $25. In other words, that additional $25 of cost would
not have been inccurred if the customer did not have to return the
item. Our accountants want to know how much additional cost is
incurred as a result of "not getting it right the first time". Since
there is no canned report in Vantage to show this, I was curious if any
others are tracking this cost and how.
Any suggestions would be greatly appreciated.

Thanks!

[Non-text portions of this message have been removed]



[Non-text portions of this message have been removed]