Return Merchandise Authorization (RMA) and Return for Credit Procedure

Summary:

The objective of this card is to demonstrate the procedure that must be followed for a product RMA or return for credit. Both of these similar procedures are very time sensitive and require immediate attention.

Definition:

In informal terms, an RMA is a product that has been or needs to receive the authorization from the vendor, prior to being returned and replaced for various reasons. A Return for Credit is similar with the exception that the product will no longer be needed by L3 and a credit to the L3 account is being requested. For the credit process the Warehouse will create the VRA in Netsuite. For a replacement item this is not needed.

Participants:

As in all projects, there are several team members who have roles in this procedure.

Project Manager: The PM is responsible for ensuring that all RMAs and Returns are resolved and concluded successfully, just as in all other aspects of their projects. However, the PM has minimal tasks to perform in the procedure outlined below.

Warehouse: Check the Return Shelf daily.

Initiator: This role can be performed by any team member who would discover the RMA or be tasked with executing it. This could be a FE, Installer, Warehouse personnel, Project Engineer or PM.

Accounting: Accounting will follow up on the VRA and RMA credit if the item is being returned for credit not for Replacement of repaired items.

Project Engineer: The PE/ BE does not have a task role in this procedure unless they were the Initiator. However, the PE should be informed of the RMA.

Procedure:

1. The individual who identifies the defective or un-needed product becomes the RMA Initiator and fills out the following information on Return for Credit Label (below) and attaches it to the item(s) to be returned. This can be done upon returning to the L3 warehouse if on client site but should be done immediately upon arrival to ensure parts are not misplaced.

2. The product must be properly repackaged in its original packaging. Please take all precautions to repackage it as it was received with all miscellaneous parts.

The repackaged item(s) is to be placed on the Return Shelf labeled “RMA Shelf” located in the Warehouse. If too large, the item(s) are to be placed in front of the cart.

3. The RMA Initiator will notify the Warehouse@l3av.com team for all RMA's and forward any RMA emails obtained.

The “RMA Shelf” is to be checked by the Warehouse Team daily.

4. NOTE: Lead Times on getting the RMA Process started once the item has been marked for return should be NO more than 4 days.

The Warehouse Manager will perform the following tasks:

• Retrieve the original Level 3 Purchase Order Number.
• Determine whether the “Reason for Return” explained on the label falls under Level 3’s responsibility OR the manufacturers responsibility. If it is the Manufactures responsibility and needs a Advanced Replacement or Repair then they should take the item to the Integration Shop for RMA follow up and follow that process.
• The manufacturer or vendor is contacted via e-mail requesting RMA Approval Number.

List of vendors and preferred method found here: RMA VENDOR RETURN

• Make sure to request the Restock Fee Amount/Percentage if applicable.
• Make sure to get any pertinent information regarding shipping details from the manufacturer.
• When all above information has been gathered the item is to be shipped back to the manufacturer. Original packaging is a desired goal with any RMA.
1. The Warehouse Manager performs the RMA entry into NetSuite via the following steps: (This is only for a return for credit. A Repair or Replacement does not get logged into the "Authorize Return/VRA page as there is no financial credit due to the job)
• From the product(s) Purchase Order in NetSuite; select “AUTHORIZE RETURN”
• Remove all items from the list that will not be included on the RMA
• The following information is to be included in the Memo Field:
• Job Name, Job Number, PM if applicable
• Person that initiated the RMA
• The following information is to be included in the Notes Field
• Restocking Fee amount and/or percentage.

• Update the Inventory spreadsheet
• The warehouse team should be the one to update the spreadsheet as well as the column marked "ITEM STATUS". A comment with the NetSuite VRA number should be added to the cell and "RMA Pending" should be selected until the RMA is approved. At that time "ITEM STATUS" should be updated to "RMA Returned".

6. The Warehouse also performs the Shipping & NetSuite VRA Finalization
• Once Return Authorization is approved, recall specific Netsuite VRA Entry and select "Return".
• Upload the RMA Confirmation Document from the Manufacturer/Vendor to the RMA entry.
• Warehouse team to package and arrange the return shipment of the approved equipment.
• Change the CLASS field to "Standard : Integration" and the LOCATION field to "AZ"
• Add all tracking information to the RMA Entry in the Packages Field
• SAVE
7. Obtaining Credit Retrieval
• Accounting Team Member will need to look at the RMA board daily to keep vendors bills and credits in order.
• If an item is being returned it is the Accounting's role to make sure the credit is received in a timely manner.
• Once the credit is received accounting will close out the VRA in their process.