diff --git a/models/baseModels/AccountingSettings/AccountingSettings.ts b/models/baseModels/AccountingSettings/AccountingSettings.ts
index c6ac8886..e1cef9da 100644
--- a/models/baseModels/AccountingSettings/AccountingSettings.ts
+++ b/models/baseModels/AccountingSettings/AccountingSettings.ts
@@ -51,7 +51,6 @@ export class AccountingSettings extends Doc {
   override hidden: HiddenMap = {
     discountAccount: () => !this.enableDiscounting,
     gstin: () => this.fyo.singles.SystemSettings?.countryCode !== 'in',
-    enableStockReturns: () => !this.enableInventory,
   };
 
   async change(ch: ChangeArg) {
diff --git a/models/inventory/StockTransfer.ts b/models/inventory/StockTransfer.ts
index 1e187338..9588f6f2 100644
--- a/models/inventory/StockTransfer.ts
+++ b/models/inventory/StockTransfer.ts
@@ -206,6 +206,11 @@ export abstract class StockTransfer extends Transfer {
     await this._updateItemsReturned();
   }
 
+  async beforeCancel(): Promise<void> {
+    await super.beforeCancel();
+    await this._validateHasReturnDocs();
+  }
+
   async afterCancel(): Promise<void> {
     await super.afterCancel();
     await updateSerialNumbers(this, true, this.isReturn);
@@ -268,8 +273,8 @@ export abstract class StockTransfer extends Transfer {
   }
 
   async _updateItemsReturned() {
-    if (!this.isSubmitted || !this.returnAgainst) {
-      return null;
+    if (this.isSyncing || !this.returnAgainst) {
+      return;
     }
 
     const linkedReference = await this.loadAndGetLink('returnAgainst');
@@ -281,11 +286,33 @@ export abstract class StockTransfer extends Transfer {
       this.schemaName,
       linkedReference.name
     );
-    const isReturned = !!referenceDoc;
 
+    const isReturned = this.isSubmitted;
     await referenceDoc.setAndSync({ isReturned });
   }
 
+  async _validateHasReturnDocs() {
+    if (!this.name) {
+      return;
+    }
+
+    const returnDocs = await this.fyo.db.getAll(this.schemaName, {
+      filters: { returnAgainst: this.name },
+    });
+
+    const hasReturnDocs = !!returnDocs.length;
+    if (!hasReturnDocs) {
+      return;
+    }
+
+    const returnDocNames = returnDocs.map((doc) => doc.name).join(', ');
+    const label = this.fyo.schemaMap[this.schemaName]?.label ?? this.schemaName;
+
+    throw new ValidationError(
+      t`Cannot cancel ${this.schema.label} ${this.name} because of the following ${label}: ${returnDocNames}`
+    );
+  }
+
   _getTransferMap() {
     return (this.items ?? []).reduce((acc, item) => {
       if (!item.item) {