Understanding Creating Credit Orders to Return Outbound Inventory

You enter a credit order manually to record a returned item and credit the current price to the customer. For internally owned shipments, the credit orders do not have a price attached. You use the credit order to update inventory balance information and agreement remaining quantity information. You enter credit orders in the same way that you enter sales orders.

When you confirm shipment of the credit order you create to return outbound inventory, the system reduces the quantity from the customer's location and increases the quantity at the supplying location. The system also increases the agreement remaining quantity when the returned inventory is received at the supplying location.