If there is a customer who has purchased a size L t-shirt and wants to exchange it for a M - what is the best way to process this within Magento? The price is the same.
I'm using Magento Community Edition 18.104.22.168 and also have the Ebizmarts Sage Pay Suite installed, which may or may not be relevant.
For your requirement, you need to do something like this:
You can also use a special extension to handle returns and exchanges in Magento. Check out this one https://www.magentocommerce.com/magento-connect/rma-by-amasty-1.html
So a credit memo is created for a return and then applied to a new order?
It seems like the RMA process of accepting a return is not at all connected to refunding the item. Is this corect?
ie: We must approve and accept a returned item in the RMA. Then go to Invoice > Credit Memo to issue the refund?