Folks,

We initially struggled with how to handle customer returns in NetSuite. We eventually settled on using two additional locations for returned items, in addition to our main location, as follows:

- Open Box
- Damaged

When a customer returns a perfectly fine widget, we issue a credit memo with the location at the line-item level being "Open Box". We eventually fulfill this item from the same location (at a cheap price) to some lucky customer, and so ideally the # of items in the Open Box warehouse is usually zero.

The only problem is that the COGS of all these credit memos is wrong! In fact, Netsuite has created a whole whack of credit memos into (and fulfillments out of) the Open Box warehouse that have no G/L impact on either Cost of Sales or Inventory. Those lines are just missing!