A system, a method, and computer readable medium for threshold billing of returned items. Billing threshold rules are established and stored in a computer memory and are associated with returned items. A returned item is identified and a computer processor determines if a billing threshold rule has been associated with the returned item. If so, the processor assigns the returned item to a container based on a billing threshold rule associated with the returned item. Information indicating the container to which the returned item has been assigned is stored in the computer memory. The processor determines if the billing threshold amount for the returned item has been reached. If so, the processor determines the status of the container to which the returned item has been assigned. If the container to which the returned item has been assigned is not closed, the processor generates a notification to physically close the container and also generates an invoice to the product vendor for the returned items for which the billing threshold amount has been reached.