Jira Code: CORP:17
A default way is to create an RMA from the returned sales order. In that RMA form, by selecting an option, not to restock the item. We can restock if needed. By default, the restock option will be checked true. Then create a credit memo for that RMA instead of a cash refund. Then place a new sales order and invoice it. In that invoice item, we can apply a credit memo. Or create a payment item in the invoice. Then in the credit memo page add that same item and choose the invoice in the apply tab. Or apply a credit memo to invoice to show the amount zero.
Note: In the credit memo, we create for this item, it will not include the shipping cost. The amounts excluded from the shipping cost is added as a credit amount in the credit memo. The amount due for this order is zero. But in the print, it will show the transaction total for that item and it will not be zero.
Another way is to show the amount due is in print.