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How to remove a billed item from a SO

If a SO has multiple items and we have already billed it and now we need to refund and remove a item; Our usual process is:

1. Process refund at the cash sale.

2. Go to the SO and click on "close" by the line item that was refunded.

3. If the item was drop-ship, then remove the item from the drop-ship PO.

4. If a fulfillment record was made, delete the one item that was refunded

Here is an additional procedure that I always wonder if I should do...

-Should I delete the item from the SO and not just close the line?

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