When you want to return an order, go to the order page and click "return order".
After all needed information is in place, save the return by clicking "create" in the upper left corner.
All returns are found on "returns" page. There you can easily see the status of all returns.
When the status changes to RECEIVED, the products have arrived to the warehouse.
When the status changes to INSTOCK, the products are on the shelf and ready to be ordered again.
On the return page, you can see the received count.
If you want to receive notifications when an order is returned, read more about email notifications.