You can do this with RetailEdge as well. With RetailEdge you can add a line item note or a receipt note, or simply change the description. Then when you exchange or return something you will know the reason for the exchange.
In RetailEdge a return will always go back into inventory. It should be store policy about what to do with these items. You could just have your clerks print out a second receipt (ctrl-alt-R) and attach it to the item being returned. Depending on how you deal with returns, you would then just have someone either put the item back on the shelves, or in the case of the defective item, since the ticket is attached to the item, simply look up the ticket on the Sales Manager and select the defective returned item, and press the Copy to PO button. This will put the item on a PO. Many stores have a return PO that the will add items to until it becomes large enough to return or another delivery comes from the Vendor.
When doing this you should add the Negative item quantity to the Purchase Order. Then you will Receive the purchase order with the negative quantity and this will remove the item from inventory. This will provide the record keeping you will need to determine how many products you have returned to the vendor.
Here is another forum post that discusses uses for negative purchase orders.
http://www.retailedge.com/phpBB/viewtop ... 177&p=3617
waleed12 wrote:I was at Sears the other day and a girl was exchanging a defective pair of pants. When the clerk rang them in as a return she selected defective, which did not add them back into inventory, and printed a tag with a description of the defect which she placed on the pants. I thought this would be a great feature, as sometimes we only send back defective items yearly, and forget what was wrong with them. Any way something like this might be in a future upgrade?