If we are expecting some returned items from customers and we want to put them back in stock and offer no refunds - 1. Can we do this via a Credit Note? Or must we create Return Authorisation 2. Can we create the Credit Note/RA directly on the Customer record as we don't have the original transactions for the items

close the order. +1 inventory adjustment?

How come we'd need inventory adjustment? Say the item that is being returned, we put that on the credit note line and set rare to zero. That should increase inventory?

You could do a return authorization at zero dollars, right? That would link the returned inventory to the customer and original transaction without requiring a refund.

Issue is, we don't have all the original transactions so was wondering if it's an issue applying it against the customer directly

in that case @leo_ns option would be viable one. You need RMA and an item receipt to add the item back to inventory