When creating an RMA, the following are updated in Managely depending on whether it is a part return by a direct expense or a return from a warehouse.
Direct Expense
Job Costing associated with the work order is updated to account for any parts being removed from the work order. Managely takes the total amount associated with the RMA and removes it from either the actual or WIP columns, depending on whether the work order type is using the direct expense costing method or the WIP or Accrued WIP costing method.
Managely removes the quantity of the parts that are on the RMA from the quantity issued column on the work order’s Parts tab.
Managely generates a GL entry. The entry depends on whether the work order type for the work order is using the direct expense or the WIP/Accrued WIP costing method:
- Direct Expense credits COGS (determined in the Work Order Type selected for the work order) and debits Accounts Payable.
- WIP/Accrued WIP credits Material WIP (determined in the Work Order Type selected for the work order) and debits Accounts Payable.
Return from Warehouse
When generating an RMA for a part returned from a warehouse, Managely removes the quantity of the parts that are on the RMA from the quantity on hand in the warehouse selected at the header level of the RMA.
Managely generates a GL entry. This GL entry credits the warehouse's GL account for the warehouse selected in the header level of the RMA and debits the Accounts Payable GL Account.