diff --git a/packages/medusa/src/api/routes/admin/returns/__tests__/receive-return.js b/packages/medusa/src/api/routes/admin/returns/__tests__/receive-return.js
index 35b969c3ed..44d0ab3261 100644
--- a/packages/medusa/src/api/routes/admin/returns/__tests__/receive-return.js
+++ b/packages/medusa/src/api/routes/admin/returns/__tests__/receive-return.js
@@ -39,7 +39,8 @@ describe("POST /admin/returns/:id/receive", () => {
         IdMap.getId("test-return"),
         [{ item_id: IdMap.getId("test"), quantity: 2 }],
         undefined,
-        true
+        true,
+        { location_id: undefined }
       )
     })
 
diff --git a/packages/medusa/src/api/routes/admin/returns/receive-return.ts b/packages/medusa/src/api/routes/admin/returns/receive-return.ts
index 76198c7357..f7f4d73127 100644
--- a/packages/medusa/src/api/routes/admin/returns/receive-return.ts
+++ b/packages/medusa/src/api/routes/admin/returns/receive-return.ts
@@ -5,7 +5,12 @@ import {
   IsString,
   ValidateNested,
 } from "class-validator"
-import { OrderService, ReturnService, SwapService } from "../../../../services"
+import {
+  OrderService,
+  ProductVariantInventoryService,
+  ReturnService,
+  SwapService,
+} from "../../../../services"
 
 import { EntityManager } from "typeorm"
 import { Type } from "class-transformer"
@@ -98,13 +103,15 @@ export default async (req, res) => {
   await entityManager.transaction(async (manager) => {
     let refundAmount = validated.refund
 
-    if (isDefined(validated.refund) && validated.refund < 0) {
+    if (isDefined(validated.refund) && validated.refund! < 0) {
       refundAmount = 0
     }
 
     receivedReturn = await returnService
       .withTransaction(manager)
-      .receive(id, validated.items, refundAmount, true)
+      .receive(id, validated.items, refundAmount, true, {
+        locationId: validated.location_id,
+      })
 
     if (receivedReturn.order_id) {
       await orderService
@@ -169,4 +176,8 @@ export class AdminPostReturnsReturnReceiveReq {
   @IsOptional()
   @IsNumber()
   refund?: number
+
+  @IsOptional()
+  @IsString()
+  location_id?: string
 }
diff --git a/packages/medusa/src/services/return.ts b/packages/medusa/src/services/return.ts
index cc660bc4f1..4e1c48ae3f 100644
--- a/packages/medusa/src/services/return.ts
+++ b/packages/medusa/src/services/return.ts
@@ -567,7 +567,8 @@ class ReturnService extends TransactionBaseService {
     returnId: string,
     receivedItems: OrdersReturnItem[],
     refundAmount?: number,
-    allowMismatch = false
+    allowMismatch = false,
+    context: { locationId?: string } = {}
   ): Promise<Return | never> {
     return await this.atomicPhase_(async (manager) => {
       const returnRepository = manager.getCustomRepository(
@@ -657,6 +658,7 @@ class ReturnService extends TransactionBaseService {
       const now = new Date()
       const updateObj = {
         ...returnObj,
+        location_id: context.locationId || returnObj.location_id,
         status: returnStatus,
         items: newLines,
         refund_amount: totalRefundableAmount,
@@ -682,7 +684,7 @@ class ReturnService extends TransactionBaseService {
         if (orderItem && orderItem.variant_id) {
           await productVarInventoryTx.adjustInventory(
             orderItem.variant_id,
-            returnObj.location_id!,
+            result.location_id!,
             line.received_quantity
           )
         }