Answer : Subject : Good Return from Customer

Hello
All returns against sales order are effected against sales order type RE.
You can copy this order type and rename it to suit your purpose. Kindly understand that sales returns are against billing raised. which means while creating the sales return order , do it with reference to the Billing Number. this will ensure all the original effects in the billing to be passed on to the SRA . The creidt memo is based on the order and not on the delivery. so you need to be careful.
try it first in the deveelopment server before doing it in the production server. also ensure to verify that the creditmemo actually credits the customer and debits sales account. we had this problem due to some hot patch application in ver 4.0B and then had to get the relevant code from SAP OSS for applying in the copy control routines. As regards the payment, the amount will appear as credit balance in the customer account and you need to decide whether to adjust against some other invoice or refund the amount to the party.