Intercompany Invoicing in case of Return

HI All,

Please provide some input if the Standard Oracle Functionality satisfies the below requirement.

We have two Operating Units.

Sales Office is one one OU and Factory is in another.

Sales office undertakes Sales Order booking.But the shipment happens from factory.Sales office Raises AR invoice to Customer.Factory raises intrecompany AR invoice to Sales Office and Sales office raises Intercompany AP Invoice to Factory.

Now if the customer finds some of the items defective and returns to the Factory.How Intercompany Invoicing will be handled in this scenario.

Regards,

Pranay