How would you handle Warranty replacement parts or items in zoho inventory

How would you handle Warranty replacement parts or items in zoho inventory

Hi everyone,

I'm working on setting up zoho inventory for our distribution business.  We handle the service for our customers and will replace items that malfunction under a warranty basis.  Does anyone else do this and how do you set it up in inventory?  Do you have to create a sales order and if you want to the original item back, do you use a RMA?  If so, how is it done so there isn't a credit memo associated with it?

Thanks,
Tim