How to correct Sale Order Return (RMA) that was incorrectly done

Occasionally a users may incorrectly do a sale order return transactions of quantity greater than required or even for the wrong customer or sale order number.

Sometimes credit memos are also generated against these returns.

How can we do corrections of such returns?

Here are some suggestions we have come across:

1. Create and ship new sale order for the excess returned quantity:

   Problem: Creating a new sale order will cause audit and tax issues.

2. Manually cancel the credit memo in receivables and do a miscellaneous transaction to adjust inventory quantity and COGS account

Problem: Reports will show incorrect sales quantity to the customer. All reports from order management will show incorrect figures.