Abstract: The present invention provides a method, program and system for processing product returns. In response to a single input of a returned item's identification (i.e. scanning a serial number), the invention matches the returned item with a return authorization. This authorization is created if the returned item meets specified criteria. The invention then automatically updates inventory files to include the returned item, designating the item as a return that is not available for resale. The invention also creates a return-to-manufacturer order and an account receivable for warranty exchange. In one embodiment of the present invention, a manufacturer file is also automatically updated to allow the manufacturer to identify the returned item as well as the source of the return.