Sales returns

You would create a sales return when you want to credit the customer for the return of product and the want the transaction once completed to return the line items back into inventory stock.  If you are not wanting inventory to return back into stock, but you want the customer to receive a credit then you should issue a credit instead.  In order to do a sales return you can create a copy order of the original order and then change the order quantities to a negative value.  It is not required to copy the original order as you can simply create a new order for the lines being returned and set the quantities to negative values.  It is important to note that returns and credits involve negative order/invoice quantities and the unit price is never negative.  

You can quickly create a sales return from copying an existing order by pulling up the previous order from a customer's order transaction list history and then clicking on the copy order tab and checking the copy order box. There is an additional check box that can be clicked called copy order number if you are wanting to reference the previous order number on the new order which is likely on a sales return.   The next step is to scroll down to the line items on the order and click on the check boxes for the line items you want on the new sales return order.  At that point you are prompted if you want to copy the shorted quantity or the order quantity from the order being copied.  You would select the order quantity in the case of a sales return as the other option is used to create back orders.  You then click on the copy order button and the new order is created with the same order properties as the one that was copied, but the line quantities are set to negative values.  On the newly created sales return order you can change the unit price as well if you want to change the amount of credit the customer will received.