Process a Return Order (Refund) in Dynamics 365

Description: Much like processing sales requires a Sales order, issuing refunds requires an original Sales Order to RMA and a Return order to process the refund. The following steps will guide you through creating return orders and subsequently issuing refunds for customer purchases.

• Creating an RMA
• Invoicing an RMA

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Creating an RMA

1. Navigate to Accounts receivable > Orders > All return orders.
   
2. Select New to create a new RMA.
   
3. Find the Customer account you would like to create the RMA for, then select OK.
   
4. Navigate to the Return order tab and select Find sales order.
   
5. Under Headers, select the checkmark next to the order you’d like to create the RMA for.
   
6. Under Lines, select the items you’d like to create the RMA for (if issuing a partial refund). Once finished, select OK.
   
   Important: If you are only refunding a specific item (partial refund), make sure to select only the item that the refund will be issued for.
7. Navigate to Return order, and under Return reason code, select option 21.
   
8. Scroll down to Line details, and under Disposition code, select option 21.
   
   Important: If you are refunding multiple line items, make sure the Return reason and Disposition code are selected for each item.
9. Select Complete and then Submit.
   
   
   

Invoicing an RMA

1. At this point, the status of the return order should change to open. To complete the refund, navigate back to Modules > Accounts receivable > Orders > All sales orders. 
2. You should have a new order populated with the Order type of Returned order. Select the hyperlinked Sales order number to open it.
   
3. Navigate to the Invoice tab, and under Generate, select Invoice. 
   
4. Under Quantity, select All.
   
   Important: If you’re splitting a refund into separate payments, make sure to delete the item that will be refunded separately. Visit the Partially Invoicing a Sales order article for more information.
5. Once finished, select OK.