here is the basic use case. I am curious if this is possible with Standard AX.
For customer ABC, we ship 20,000 pounds of item XYZ. the customer rejects then disposes of 10,000 pounds of the item and we agree to credit them for amount 10,000 that was disposed of. Can this be done without bringing the inventory back in then cycling it out?
Yes you can just raise a financial sales journal crediting the customer processing to an offset, unrelated to the item altogether, but is a pure financial transaction, not inventory based.