UNABLE TO EXCHANGE or RETURN CERTAIN ITEMS IN POS?

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I had a customer come back to my store with an exchange. She wanted a different item in the store. When I went to process the exchange, I got an unusual message:

PROCESS EXCHANGE IN SHOPIFY ADMIN -- THIS ORDER IS NOT DIRECTLY EXCHANGEABLE ON SHOPIFY POINT OF SALE. VISIT THE SHOPIFY ADMIN TO PROCESS AN EXCHANGE. 

This is EXTREMELY problematic!!! It seems that because the items she was returning were "out of stock" I was unable to process a return or exchange. BUT WHY??? WHY IS THIS AN ISSUE? This should not be an issue and it needs to be fixed. 

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same here. Pretty embarrassing. I was trying to do an exchange on an order, for the second time for a customer. I received the same message.

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