What must be created for managing returns in order management?

To effectively manage returns in order management, a return authorization must be created. This document serves as a formal approval that allows customers to return goods they might not want or that are defective. It is an essential step in the returns process, as it documents the customer's intention to return specific items and provides them with the necessary information regarding return policies.

Return authorizations help streamline the process for both the customer and the business by ensuring that returns are tracked and processed efficiently. Once a return authorization is issued, it can be easily tied back to the original sale, which aids in inventory management and financial tracking within the system. This documentation is critical for maintaining accurate records and managing customer relationships, as it helps monitor return trends and any potential issues with products.

In contrast, the other options relate to different functions within the order management process. A sales invoice is used for billing customers upon the completion of a sale. A credit memo is issued to adjust the amount owed by a customer, typically after processing returns but does not initiate the returns process. An inventory adjustment pertains to changes in stock levels and usually is not directly connected to the customer-return process. Therefore, the return authorization is the specific document required to manage the return successfully.