Along with a customer return site and customer spares site, you can set customer return and spares location defaults. The return default location appears on RMA receipt lines, the spares default on RMA issue lines.

If you use a special location for receiving RMA goods, this location probably has special characteristics. You need to ask yourself: Should the received material or items be available for inventory allocation? Generally, until the returned item is thoroughly inspected, you would not want it to be available for sales orders or work orders. In this case, set your return location to have a status of not available.

Another consideration: Do you want the inventory at your return location to be nettable? In other words, do you want this inventory to be considered on hand by MRP? If most of your returns can be put into usable stock with little or no repair, set the status of this inventory location to be nettable. If you tend to scrap most returns, set the status to be non-nettable, so MRP does not count the inventory as being on hand.

The RMA receipt function actually does a negative sales order shipment to process the return, so the ISS-SO transaction should not be restricted for this location.