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Q: How can we return a serialized item and remove it from our inventory?

Do this if you are taking it back from a customer:

You just want to create a customer credit to take back the serialized item. Select the customer, enter the item number, the serial number should be available to select. Now that item is back into inventory.

Do this to get it back to the vendor and out of your inventory:

Create a vendor credit. Select the vendor you are returning it to. Enter the item number and select the item from your inventory. Now it’s out of your inventory.