Cash Refund from Drop Ship Transaction Generates Cost

In a Drop Ship Transaction the vendor directly ships the item to the Customer, hence Item Fulfillment usually does not generate cost.

 

When Customer returns the Item, the system generates cost on Cash Refund Transaction because of the following:

1. Advance Receiving feature is disabled.
2. There is a previous cost posted from the Historical Data of Inventory-Affecting transaction related to the item.