The second option you have when processing RTS items is to set Inventory Issue to Yes in RTS Maintenance (11.7.3.1). This means you are issuing inventory and not tracking the returned item in the database.

Setting Inventory Issue to Yes is roughly the same as when you are processing a sales order shipment or RMA shipment. Once the shipment occurs, the inventory is reduced, and you no longer have visibility of the inventory for this item. When you set Inventory Issue to Yes, the inventory ships from the customer return site and is no longer visible within QAD EE.

Both a return to supplier and a receipt from supplier create the same transaction type (RCT-PO). The only difference is that in the return, the quantity is negative.