Integration of RMA costs


so many time since my last doubt :wink:
today I’m searching for how to put on manager a cost of RMA.
1 my client have a problem with some device i sold
2 I sent the bad device to manufacturer, but this have transport cost for me
how to integrate this on manager?

thank you

The answer depends on exactly what you mean by “RMA.” Typically, an RMA is a returned merchandise authorization. Such an authorization by itself has no accounting impact. But if you are referring to an adjustment of customer’s account due to a warranty allowance, actual return of the goods, or replacement of damaged, then accounting transactions must be recorded.

Normally, such adjustments occur with a credit note. Read the Guide: If you still have questions, please be more specific.

Also, understand that the action you take related to transport cost will depend on circumstances. You can refund transport costs originally invoiced to the customer with the same credit note that adjusts the goods purchase. If you want to credit the customer for the cost of returning goods to you, that can be done with a credit note, too. But if you have to pay a third party for transport to return the goods, that would be a separate payment or purchase invoice and is unrelated to the customer’s account.

this situation occur under warranty, so no costs to the costumer can be asked.
the situation is only about my expenses solving the complain of the costumer, in this case, the cost to send the damaged device to the manufacturer, that cost will not be refunded from manufacturer.
I think this is important because this expense have to reflect in profit margin from the sell of this device.

Do you need to see the effect on the single item or on the inventory category?

I was not referring to costs to the customer. A credit note reflects a credit to the customer’s account, which you might then refund. If you are not adjusting the customer’s account in any way, but only absorbing the expense of repairing or replacing the device, then your expenses should be recorded as normal purchases, either with purchase invoices or payments, naming whoever you will pay the money to.

Such transactions can be posted to an expense account set up for the purpose. You cannot easily track the effect on profit margin for the inventory item, though, because you cannot post anything directly to the Inventory - cost account. And if you post the costs (at zero quantity) to Inventory on hand, that only affects the average cost of items remaining in stock, not the cost of items already sold.

In my experience, warranty costs are not attributed to individual items. Gross profit is calculated as inventory sales less cost of goods sold. Warranty and repair costs are tracked as a separate operating expense. If you want to calculate the effect on profitability of warranty expenses, you can make certain to describe them thoroughly. Then you’ll be able to search and export or generate custom reports based on what they pertain to. I can tell you, however, that kind of information is often easier to get from a customer support system than from your accounting program.

I think I got the idea.

Thank you