Mascidon, LLC

SAP Business  One Add-on Products

Return Goods Authorization

The Return Goods Authorization (RGA or Return Material Authorization - RMA) process within SAP Business One can be as simple as a draft credit memo to the customer.  In some instances however, returns involve more complex processing of warranty claims and repair services.  Mascidon has implemented this more comprehensive RGA / RMA process for instances where the simple approach is not adequate.

In a warranty or repair situation there is often an evaluation phase required.  The customer may be given a temporary replacement part, may need to wait for the repair of their product, or is simply sent a replacement to fulfill the warranty.  Referring to the diagram below, the customer invoice is retrieved when an RGA is contemplated.  The entire invoice or a line item on the invoice can be moved to the RGA document.  From that point, if the item is to be repaired, the 'Create Sales Order' function is automated.  The sales order can have an associated production order for the repair of the item.  When the repair is complete, a delivery order for the repaired part is created and the part is shipped back to the customer.


if the part is under warranty, the RGA / RMA document is used to create Customer Return document - which accounting later turns into a credit memo.  At the same time a delivery order for a replacement part is created so that it can immediately be shipped to the customer.


The keys to managing the RGA process are to use SAP Business One to ensure the correct invoice with the part originally sold to the customer is identified, and then to create a returns document from this document.  Then the RGA document stays open until the goods are received from the customer.  The processes defined below tie all of the documents together.

Key Features

  • Use SAP Business One to drill down to find the specific invoice for the part(s) sold to the customer
  • Assign a specific return goods authorization number to the customer
  • Permit multiple invoiced parts to be associated with a single RGA
  • Track warranty repairs in depth –even if same item has multiple RGA’s
  • Provide means to track replacement parts sent to customer on temporary basis
  • If repair services are offered
  • The RGA process creates the sales order to record the sale of the service
  • The Production order costs are tracked
  • The return of the repaired part is processed
  • SAP B1’s standard equipment card is used for serialized item repairs