Tracking damaged items returned by the Customer

Returned items due to physical damage can either be restocked or written off. Tracking for damaged items intended to be restocked but can no longer be sold, due to its condition, can be possible through the following steps:

1.  Create a location intended for damaged items
2.  Enter an Item Receipt created from the Return Authorization
    - Enable Restock checkbox on the line item
    - Set Location to the location in step 1 above.
    - Enter unit cost on Override Rate column
    - Hit Save

After determining that damaged quantity needs to be written off, simply enter an Inventory Adjustment and set Location used by the damaged items.