1. Openbravo QuickStart 2
User Manual
Chapter 06 – Customer Return
to Replacement
v2.0.1
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Introduction ....................................................................................... 1
Abstract Business Process .................................................................. 2
Roles Involved .................................................................................... 3
Configuration ...................................................................................... 3
Storage Bins ...................................................................................... 3
Step-by-Step....................................................................................... 4
Create Return Merchandise Authorization (RMA) ..................................... 4
Return Sales Order .......................................................................... 4
Replacement Sales Order .................................................................. 5
Receive Returned Product .................................................................... 6
Inspect ............................................................................................. 8
Store ............................................................................................. 8
Refurbish........................................................................................ 8
Dispose .......................................................................................... 9
Send Replacement.............................................................................. 9
Create Sales Invoice ........................................................................... 9
Crediting the Customer.................................................................... 10
Invoicing Replacement Items ........................................................... 10
Settling the Two Payments................................................................ 0
Accounting ........................................................................................ 10
Configuration .................................................................................... 10
Posting of the Sales Invoice ................................................................ 11
Allow Negative = Y ......................................................................... 11
Allow Negative = N ......................................................................... 11
Introduction
This workflow manages the return of goods from a customer that requires replacement for
the goods:
• Authorization of returning a product

2. • Receive and handle the returned product
• Send the replacement
• Issue additional invoice if required
Abstract Business Process
The abstract process customer return to replacement process is outlined by the following
diagram:
The following sub-processes form it:
• Return Merchandise Authorization (RMA) - authorize the return of a product
• Receive Returned Product - receive the product into the warehouse
• Inspection and depending on the outcome:
◦ Store the product
◦ Dispose the product
◦ Refurbish (Repair) the product
• Send Replacement

3. • Create and Send a Sales Invoice
Roles Involved
The following roles are involved with this process:
• Finance - this role authorizes returns
• Material Management - receive the product and handle it appropriately within the
warehouse
Configuration
Before this process can be used, the following elements need to be configured first:
• Specific Storage Bins that can hold:
◦ Recently received items
◦ Items waiting for refurbishing
◦ Items to be thrown away (disposed)
Storage Bins
Please see Wall to Wall Accuracy Count chapter for more information on how to setup
warehouses and storage bins. Normally three separate bins should be configured for storing
returned items:
1. a bin for recently returned items waiting for inspection
2. a bin for items pending to be refurbished
3. a bin for items pending to be disposed of
Here is an example of a configuration:

4. Step-by-Step
Create Return Merchandise Authorization (RMA)
The Finance role should be used.
When a customer requests a product to be returned, the finance department must record
and authorize this request. Since a return shipment will also be required, there are two
steps necessary to record the authorization of this transaction:
1. A standard Sales Order must be created, indicating that items are expected to be
returned from the customer (hence, negative amounts must be used in the [Lines]
tab)
2. Another standard Sales Order should be created, ordering shipment of replacement
items to be sent.
Return Sales Order
Using the Sales Management || Transactions || Sales Order window create a new
header with the Business Partner that is returning the items:
Fields to note:
• Description - enter a reason for the return of this particular merchandise
• Transaction Document - a Standard Order should be used for RMA documents.
Note: Do not use the Returned Material transaction document.
• Business Partner - the customer that is returning the item
• Invoice Terms - After Delivery should be used which means the customer will get
credited for returned items once the goods are received back into the warehouse
• Warehouse - select the correct warehouse which contains the bin where returned
items are stored
• Sales Representative - the person who authorized a return

5. Then, move to the [Lines] and enter the products that are being returned. Create a line for
each product that is returned, entering the quantity in negative:
Fields to note:
• Product - select the product that is being returned
• Attribute Set Value - enter or select an attribute in case the product supports
them as an additional description
• Ordered Quantity - enter the quantity being returned in negative
• Net Unit Price - make sure the price here is the one that will be used to credit
back the customer
Complete the document back in the [Header].
Replacement Sales Order
Now, create another sales order to the same Business Partner, this time creating lines with
items that need to be sent back as a replacement for the returned ones (with positive
quantities). In order to indicate that this sales order is a replacement order do the
following:
• use the Order Reference field to enter the number of the previously created order
recording the items to be returned
• use the Description field to describe the situation and authorize this order.
• Invoice Terms - if the value of replacement items is equal to returned one and no
invoice is required, then select Do not invoice, otherwise select appropriate invoicing
term.
For example:

6. Enter replacement items in the [Lines] tab.
Note: Items sent back as replacement do not have to match the original items that were
returned. Any potential difference will later be settled by an additional invoice and a
settlement.
Receive Returned Product
The Material Management role should be used.
Once goods have been received to the warehouse, use the Sales Management ||
Transactions || Goods Shipment window and create a new record for the Business
Partner that has sent the returned items:

7. Using the Create Lines From button, find and select the RMA document (see Order
dropdown and look for items that have negative amount) and check off all the items that
have been received:
Fields to note:
• Business Partner - this will be automatically preselected according the the
Business Partner you have entered in the header of the document previously
• Order - list of pending orders to be sent or returned, look at the lines with negative
amounts
• Warehouse Position - select the storage bin where returned items should be
stored
Go to the [Lines] and double check that they correspond exactly to the items actually
returned:

8. Complete the document back in the [Header].
Inspect
There is no process within Openbravo that specifically supports inspecting the received
items and recording their state. As a workaround, the Goods Receipt document discussed
previously has Description fields that can be used to add details on the returned items.
Moreover, by placing them in a specific storage bin dedicated to items pending to be
inspected, they are kept separately and can this way be tracked.
Once the goods have been received and inspected, they will normally follow one of the
paths:
1. be stored back into the normal storage bin if the goods are good to be sold again
2. be thrown away if they cannot be used again
3. be refurbished (repaired) and then stored back into the normal storage bin to be
sold again
Regardless of the case, the Wall to Wall Accuracy Count chapter discusses documents
required to support these processes so please see that chapter for more details on how to
create individual documents.
Store
The Material Management role should be used.
In order to store the returned item(s) and enable them to be sold again, use the
Warehouse Management || Transactions || Goods Movement document to move
them from the Returned bin to the standard warehouse location where these items are
stored. Please refer to the Wall to Wall Accuracy Count chapter for details on how to use
this document.
Refurbish
The Material Management role should be used.
Openbravo does not support any specific documents to record the refurbishment. Instead,
this process is done in two steps:
1. Mark the goods as ones to be refurbished by moving them to a specific "To be
refurbished" storage bin using the Warehouse Management || Transactions ||
Goods Movement document

9. 2. Once the items are refurbished move them back to the standard warehouse location
using the Warehouse Management || Transactions || Goods Movement
document from where they can be sold again.
Please refer to the Wall to Wall Accuracy Count chapter for details on how to create the
Goods Movement documents.
Dispose
The Material Management role should be used.
If items that have been received back need to be disposed, follow the two steps:
1. Move the returned items into a specific "Dispose" bin using the Warehouse
Management || Transactions || Goods Movement document
2. After they have been physically thrown away, enter a Warehouse Management ||
Transactions || Physical Inventory document to set their stock level to zero.
Please refer to the Wall to Wall Accuracy Count chapter for details on how to create the
above documents.
Send Replacement
The Material Management role should be used.
As part of the RMA (Return Merchandise Authorization) process, a new Sales Order has been
created, ordering the delivery of replacement items. These items are now pending to be
shipped and should be done so using the
standard Sales Management || Transactions || Goods Shipment window or a Create
Shipments from Orders form. Please see Order to Cash chapter of the user manual for
details on how to create this document.
Create Sales Invoice
The Finance role should be used for all steps of this process.
If an invoice IS NOT required then the sales orders created previously for the returned and
replacement items should be closed so that they are not pending to be invoiced anymore.
To do that, use the Sales Management || Transactions || Sales Order window to find
the previous orders and click the Close button in the [Header]. Then, in the popup shown,
select Close from the dropdown and confirm with OK.

10. Make sure you do this for both sales orders.
If an invoice IS required (indicated within the Replacement Sales Order - see above) due to
the difference in value of the items returned and replaced, then the following steps are to
be taken:
1. The customer must be credited for the returned items
2. A new invoice should be created for the replacement items
3. Finally, using a Settlement, the two payments are transformed into a new one with
the amount of the difference (positive or negative)
Crediting the Customer
To credit the customer for the items they have returned, the standard Sales Invoice
document should be used. Please see Customer Return to Credit chapter for more
information on how to do this.
Invoicing Replacement Items
Use the Generate Invoices process or the Sales Invoice window in order to create a
standard invoice based on the sales order that was created for the replacement items.
Please see Order to Cash chapter for more information on how to do this.
Accounting
Configuration
The Company Admin role should be used.
Apart from the regular configuration of accounting for business partner and products, there
is another setting that affects the posting of negative quantities. Navigate to the Financial
Management || Accounting || Setup || Accounting Schema and select the schema
used. Find the Allow Negative checkbox:

11. If this is NOT CHECKED, negative amounts will be posted as positive but will switch the
credit/debit side. If this box IS CHECKED, then negative amounts will be posted as negative
to their originally configured credit/debit side.
Posting of the Sales Invoice
The Finance role should be used.
Allow Negative = Y
When the Sales Invoice is posted with the Allow Negative setting of the Accounting schema
switched ON, the posting to the general ledger is done this way:
Allow Negative = N
When the Sales Invoice is posted with the Allow Negative setting of the Accounting schema
switched OFF, the posting to the general ledger is done this way: