Does anyone have a way to refund a customer for part of the purchase price for an item they received but not actually return the item to inventory? The thought for now is to create a non inventory credit item and apply it then refund it and link it via custom field back to the line item it was generated for.

Why don’t you create customer return from SO and during item receipt untick restock box on item receipt.

Let me see if that will work for what we need. SuiteAnswers didn't give that as an option

This process moves the full cost of the furniture into an expense account like we received it but decided we could not sell it again and wrote it off. We just want to issue a credit memo against the invoice.