diff --git a/models/baseModels/Invoice/Invoice.ts b/models/baseModels/Invoice/Invoice.ts
index 24fb654c..2acebd1b 100644
--- a/models/baseModels/Invoice/Invoice.ts
+++ b/models/baseModels/Invoice/Invoice.ts
@@ -711,6 +711,8 @@ export abstract class Invoice extends Transactional {
       }
 
       let quantity = returnedItem.quantity;
+      const transferQuantity = quantity / (item.unitConversionFactor as number);
+
       let serialNumber: string | undefined =
         returnedItem.serialNumbers?.join('\n');
 
@@ -734,7 +736,7 @@ export abstract class Invoice extends Transactional {
         serialNumber,
         name: undefined,
         quantity: quantity,
-        transferQuantity: quantity,
+        transferQuantity,
       });
     }
 
diff --git a/src/components/POS/Classic/SelectedItemRow.vue b/src/components/POS/Classic/SelectedItemRow.vue
index d92fecd7..cc579f49 100644
--- a/src/components/POS/Classic/SelectedItemRow.vue
+++ b/src/components/POS/Classic/SelectedItemRow.vue
@@ -97,7 +97,7 @@
         size="medium"
         :border="true"
         :show-label="true"
-        :value="row.transferQuantity"
+        :value="getDisplayTransferQuantity()"
         @change="(value:string) => row.set('transferQuantity', value)"
         :read-only="isReadOnly"
       />
@@ -305,9 +305,9 @@ export default defineComponent({
   },
 
   async mounted() {
-    this.$watch('row.quantity', (newVal: number) => {
-      this.setQuantity(newVal);
-    });
+    // this.$watch('row.quantity', (newVal: number) => {
+    //   this.setQuantity(newVal);
+    // });
     const posProfileName = this.fyo.singles.POSSettings?.posProfile;
 
     if (posProfileName) {
@@ -348,6 +348,21 @@ export default defineComponent({
       );
     },
 
+    getDisplayTransferQuantity() {
+      const transferQty = this.row.transferQuantity;
+
+      if (!this.isUOMConversionEnabled) {
+        return transferQty;
+      }
+
+      const hasValidQuantity = transferQty && transferQty;
+
+      if (this.row.isReturn && hasValidQuantity) {
+        return -Math.abs(transferQty);
+      }
+
+      return transferQty;
+    },
     showAvlQuantityInBatch() {
       const itemVisibility = this.fyo.singles.POSSettings?.itemVisibility;