Can I create a return authorization to remove inventory without posting a credit?

AI generated answer (using internal Slack threads):

Based on the conversations, it appears that you can create a Return Authorization to remove inventory without posting a credit. You can do this by setting the rate to zero on the return authorization. This will link the returned inventory to the customer and the original transaction without requiring a refund. However, if you don't have the original transactions, you can apply it against the customer directly. Please note that if you credit an inventory item, it will put it back in stock. If the inventory is never to come back to you (destroyed in shipping, etc), you can follow through with the standard bill credit and then do an inventory adjustment to remove the inventory. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******

@Shelby Owens Since this is a drop-ship transaction, inventory is never impacted, so a Return Authorization should not be used. The correct approach is to create the Vendor Bill from the Drop Ship PO and then enter a Journal Entry to offset the balances (Dr Accounts Payable / Cr Accounts Receivable) since the customer paid the vendor directly. Apply the JE to both the Vendor Bill and the Customer Invoice to close them and allow the PO to close without affecting inventory.