Credit memo created for return orders unapplies existing receipt application on invoices

Summary:

We have observed that when a credit memo is created for a return order, it unapplies the receipt applied to the invoice created for the source order and then performs the action (refund or on-account application) mentioned in the option 'Receipt Handling Criteria for Returns' in the 'Manage Transaction Sources' setup.

We even tried keeping the field 'Receipt Handling Criteria for Returns' BLANK and then imported the credit memo for the return order. In this case, the system did not create the credit memo and gave the below error messages:

- The total amount of the credit memo can't exceed the balance of the debit item it's crediting