Exclude warehouse from Release for Picking Form

We have a different warehouse defined as a Return Warehouse in AX 2012 R3. We are not using Advance WMS. Currently, the items stored in the returns warehouse are available for picking when reservation is done through Release Sales Order for picking form. But, we do not want to allow users to pick from this warehouse. Is there any setup in AX that can help us achieve this?

One option i can see is to use the inventory blocking.
blogs.msdn.microsoft.com/…/

Thanks Kranthi. That worked like a charm.

On further analysis, this will not work for us. If we have multiple warehouses mapped in AX, we can view all the warehouses in the reservation form. So if receipt date of the inventory in current warehouse (specified on the sales order) is later than the inventory in other warehouse, it picks up items from the other warehouse. We want that the reservation should be restricted to the warehouse mentioned on the sales order itself. And it shouldn’t be allowed to pick from other warehouses in any case.

Is your warehouse not primary stocked in the dimension group? If you need it to pick up only items from the warehouse on the line it sounds like the dimension group setup is incorrect to me, allowing you to reserve across all warehouses which you dont want.

Warehouse is setup as primary stocking in the storage dimension group.

It cannot pick items from another warehouse in that setting, it is primary so would be on the sales line and the reservation would only work at that warehouse. Your setup and what you are saying is creating a contradiction. Please check and define how you are reserving the stock - release sales order picking activation will obey the warehouse as standard.