Situation
Customer sends in Item A for service / warranty. User company then, sends it to the supplier but the Item A cannot be fixed. Moreover, the supplier does not have anymore Item A in stock for replacement. So, Item A will be replaced with Item B instead.

• First go to RMA (Branch) to create a Service Repair Note (SRV).
• Then, Create RMA.
  
• Follow the steps in RMA (Department).
• Select Resolution 'REPLACE OTHER'.

On customer's side:

1. Create a Sales Return for Item A. 
• Sales Return Amount - Select 'Credit Memo Only'
  
• After creating the sales return, click 'Confirm and Save'.
  
• Click OK when a pop-up appears requesting to print. Take note of the CM number.
  
2. Then, create an Invoice of Item B to the customer.
• This step is done so that the stock balance of Item B will be reduced by 1. Otherwise, the stock balance will be incorrect.
  
3. Finally, Contra Customer Credit Memo from the Sales Return, with the invoice created in step 2.
• Use the CM number from step 1 to input in CM PKID.
• Enter the amount on credit side of the selected invoice from the list. Then, click 'Contra'.

On supplier's side:

1. Create a Purchase Return for Item A.
• Please remember this step or Item A is considered to remain in Inventory.
2. If the initial payment for Item A is still owing to supplier, the purchase return will just offset with the supplier invoice originally created for Item A.
   
• Accounts Payable will decrease.
  
3. If the payment has already been made, a CM will be created so that you can offset with future supplier invoices.
   
• To obtain the CM PKID, please go to Historical AP Balance and click 'View AP' for the selected supplier.