I have set up receipt in 3 steps, as described in the documentation. The docs describe how to accept purchased product into inventory, but not how to reject and return product. This is all it says:
Of course, you may change the quantity and only transfer to stock the quantity that is valid and decide that you will return the quantity that is not good.
I believe the process should work like this:
Process the receipt (move from Partner Locations/Vendors to WH/Input
Transfer the product to the quality zone (move from WH/Input to WH/Quality Control)
Return product to vendor (move from WH/Quality Control to Partner Locations/Vendors)
Create a Refund Invoice (like in Vendor Bills)
I tried the Return button on the delivery order (Reverse button in v9), but, it only allows me to return the product to WH/Input. Checking the To Refund box seems to have no effect.
It was suggested in another post, that a refund could be created from the delivery order, but I see no way to do that, and it doesn't happen automatically.
Return button on Delivery Order:
Return Location list and To Refund checkbox on reverse transfer:
The documentation: https://www.odoo.com/documentation/user/9.0/inventory/management/incoming/three_steps.html
The other post: https://www.odoo.com/forum/help-1/question/return-shipment-po-doesn-t-update-the-received-qty-98527
What version (6,7,8,9,10) and edition (Community, Enterprise) are you asking about? Your screenshot looks like Community.
These screenshots come from the runbot: v10, community. If there is some other solution in enterprise, I have that too.
I verified the same behavior in v9 and v10
Correction. I guess I was using the enterprise runbot v10.
OK. I have not checked, but I think it was version 8 that popped up a wizard that asked you if you wanted to create the refund after the return. In v9 and v10 you need to do that separately - I don't know what that checkbox "TO REFUND" does.