Skip to main content

Documentation Index

Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt

Use this file to discover all available pages before exploring further.

When customers return items, warehouse staff receives them back into inventory. Items can be restocked for resale or placed in quarantine if damaged.

​
Receiving Returns Workflow

  1. Customer return is authorized and an RMA is issued
  2. Customer ships items back to you
  3. Warehouse receives the return shipment
  4. Staff inspects items for condition
  5. Items are either:
    • Restocked to inventory (if saleable)
    • Quarantined (if damaged or defective)
    • Sent to vendor (if under vendor return)

​
Receive a Customer Return

  1. Go to Warehouse > Returns or Inventory > Returns (exact path varies by setup).
  2. Find the return by RMA number or customer name.
  3. Click Receive Return.
  4. For each line item:
    • Verify the product and quantity
    • Inspect the condition
    • Select the destination bin (Storage or Quarantine)
    • Click confirm
  5. Click Complete Receipt.
Receive customer return form with item and bin details

​
Restocking Options

Restock to inventory:
  • Item is in good condition
  • Place in Storage bin
  • Item is now available for future sales
  • Accounting reverses the original COGS entry
Quarantine:
  • Item is damaged, opened, or unable to resell
  • Place in Quarantine bin
  • Requires supervisor approval for disposition
  • May result in scrap, discount pricing, or vendor return
Send to vendor:
  • Defect is vendor responsibility
  • Mark for Vendor Return
  • Route to vendor returns area
  • Vendor credit is issued

​
GL Impact

When a customer return is received and restocked:
  • Inventory increases (the item is back)
  • Accounts Receivable may be credited (if refund is issued)
  • COGS is reversed (item was not sold)
Example: Customer returns a $100 item.
  • Debit: Inventory $100
  • Credit: COGS Reversal $100
  • If a refund is issued: Debit: AR Refunds, Credit: Cash

​
Damaged or Defective Items

If items are damaged on return:
  1. Place them in Quarantine bin
  2. Attach a reason code (damaged in shipping, defect, etc.)
  3. Note the damage in the activity timeline
  4. Escalate to your supervisor for decision:
    • Scrap the item
    • Attempt to repair
    • Sell as-is at discount
    • Send to vendor for credit
Quarantined items stay in quarantine until a disposition is decided.

​
Troubleshooting

“Customer return does not exist” - Verify the RMA number or customer name. The return may still be in draft status. “Cannot find the bin” - Create the destination bin first. See Bin Setup. “Quantity received differs from RMA” - Note the discrepancy in the activity timeline. The customer may have shipped fewer items than authorized. Confirm with the customer. “Item is damaged; what do I do?” - Place it in Quarantine bin. Your supervisor will decide on repair, scrap, or vendor return.

Customer Returns

How to authorize customer returns.

Bin Setup and Management

How to organize bins for restocking and quarantine.

Vendor Returns

How to return items to vendors.