Can you point me to a definition/description of the "Return-Customer" Order Status? We sometimes have customers wo return items for various reasons. This merchandise needs to be added back into inventory, and we need to generate a credit memo for the customer. We DON'T want to just cancel the item off of the order - we want to retain the history that we sent it to them, and that they later returned it (sometimes a return includes items that originally part of separate orders). Will the "Return-Customer" function work for this purpose?
If you mark the item as "Return-Customer" or "Return-Ship Agent", this will not return inventory. You typically want to mark the line item as cancelled on the order detail screen so that the returned item goes back into inventory because the cancelled status will increment the inventory level. You can put all notes in the comment section of that order.