Drop Ship Return Flow

Setup Define a workflow that includes an approval action, receiving activity, and Invoicing Activity. If your business has no physical contact with returned items that are shipped directly to your supplier, the receiving activity enables you to track the return for accounting purposes. If you choose not to account for the returned item in inventory, you need not include the receiving activity in your order flow. Assign the workflow to a transaction type. Entry and Booking Enter, copy, or import a return material authorization using standard functionality. Ensure that the order type you select includes the workflow activities discussed above. If you have agreed with your supplier that customer returns proceed directly to them, the supplier must inform you of the customer's intention to return or of the actual receipt before you enter the RMA in Order Management. Approval If the drop ship item will ultimately be returned to your supplier, you may want to wait to process the RMA until your supplier notifies you that they accept the returned item. To control processing, you can use an order -level or line-level approval action. Receiving (Conditional) You can use Oracle Purchasing's Receiving window to adjust inventory even if your business will not receive the returned item physically. If the returned item ships directly to your supplier and you do not want to record a logical transaction for the return, you need not perform receiving or include it in your order flow. Subsequently running the Invoicing Activity credits your customer for the full amount on the RMA line. If the returned item ships directly to your supplier and you want to record a logical transaction for the return, increment inventory by receiving the returned amount into a logical organization, so that your system records receipt but the item cannot be used accidentally by another order. Communicate the transaction to your buyer, who may enter a return in Oracle Purchasing, enter a miscellaneous transaction in Oracle Inventory, or perform a similar transaction according to how you have set up your business. This decrements inventory to indicate that your supplier has ownership of the returned item. If your customer returns the drop shipped item to you and you pass it to the supplier for final receipt, communicate the transaction to the buyer after you have received the returned item. The buyer may enter a return in Oracle Purchasing, enter an issue

transaction in Oracle Inventory, or perform a similar action according to how you have set up your business. If your customer returns the drop shipped item to you and you retain it in inventory, process the RMA as you would for a standard return. Crediting Your Customer Run the Invoicing Activity to communicate the RMA to Oracle Receivables, then use AutoInvoice to generate a credit memo for your customer. Closing After all lines on the RMA have completed all applicable workflow activities and after you have credited your customer, close the RMA.