An intercompany inventory transfer’s return procedure turns back the original transfer operation. It starts when the original destination subsidiary, the subsidiary that made the purchase, creates a vendor return permission for the first purchase order. An intercompany inventory transfer cannot be started with a credit memo by the subsidiary that sold the item, or the original source subsidiary. Instead, a return authorization for the vendor return authorization is automatically created by the source subsidiary. Each subsidiary then completes its respective steps in the return procedure. No line item modifications are processed by NetSuite.
Step 1 Create return Authorisation from the Paired Intercompany Purchase order
Click on Authorise Return Button to provide the necessary details save and Approve. You can process the next steps like item fulfillment, Creating debit memo, etc.
Step 2: Creating return authorization from the Paired Intercompany sales orders
Go to Transactions > Customers > Manage Intercompany Return Authorizations.
Select the customer, department, locations and check the box to the corresponding return and click on generate button
Now a Return authorization will be created from the sale order record, we can approve it create item receipt and refund the amount etc.