how do credit memos impact inventory

AI generated answer (using internal Slack threads):

In NetSuite, Credit Memos can impact inventory depending on how they are created. If a Credit Memo is created directly from an Invoice, it will adjust the stock back in. However, if a Credit Memo is created from a Return Authorization (RA), then the Item Receipt is what puts the stock back in. If you want to stop Credit Memos from affecting inventory, you can use Non-inventory items on Credit Memos. If Inventory Items are on the Credit Memo, it must be created from a Return Authorization. Another workaround is to bring your inventory item on the Credit Memo, set the quantity to 0, then override your amount field to whatever the amount should be. This method may not work if you are using serialized or lot tracked inventory. If you want your inventory to be adjusted if the Order is returned, you would typically go through the Return Merchandise Authorization (RMA) process for item returns and then you'd have an item receipt attached to that. The credit memo flow in that scenario is really more for capturing the refunded amount. It's normally easier to separate your refunds from your returns. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******