Cannot return a returnable item

Summary:

The item is returnable at Org level but non returnable at Master level. On trying to return the item OM gives me an error stating that the "selected item cannot be returned". On querying the returnable flag from the back end table it shows as Y. Can someone please help me know the reason for not being able to return the item.

Content (required):

The item is returnable at Org level but non returnable at Master level. On trying to return the item OM gives me an error stating that the "selected item cannot be returned". On querying the returnable flag from the back end table it shows as Y. Can someone please help me know the reason for not being able to return the item.