Return Order - disposition code.

Hi all ,

Return Order has the option to select the Disposition code in AX.

Can any one tell me Disposition code has any impaction financially ?

The disposition codes determines how the return order transaction should behave, the impact of it. The action field value determines the behavior.

The Contoso demo data has the well explained examples,

Credit - Put item back into inventory, credit customer

Credit only - Credit, no return of item

Replace and credit - Replace item, credit customer

Replace and scrap - Replace item, scrap returned, credit customer

Return to customer - Reject returned item, return to customer.

Scrap - Scrap item, credit customer


Yes.Disposition code determine what will happen to the returned items from both physical & financial aspects. there are predefined disposition codes in ax.

you can find this at AR>Setup>SO>Returns> Disposition code.


Hi Pioneers,

What i my question is how does the disposition codes effect on the customer open balances ?

Can you explain with an example.

I have used the both options , but in the both options stock has updated in the warehouse , But when it comes MS T&L manual says if user select the credit only ( Credit, no return of item ) , stock will not update . but it is updating .

Can any one explain me the reason ?

Hi …

As Kranthi and the manual states, the code ‘credit only’ - this does not put inventory back into stock, it does create transactions, as per example:

The 1st line is for the sales order, sold 2 (-2) invoicing the customer… the 2nd line is for the credit of 2 (2) being the refund of the sales invoice and the 3rd line is the transaction (-2) the returns order of a ‘credit only’ …i.e. showing the net effect. The 2nd and 3rd line cancel each other out, stock on hand remains as was after the item was sold

Hi Handy ,

I have tested in my database of AX 2012 , but it is not showing the transactions as per your screen shot .

Could please explain the procedure of Return order creation and through which form you receive material ?

My example:

Raise a sales order through to rasing an invoice (Sales and marketing > Common > Sales orders > All sales orders)

Next the return of the goods using a returns order (Sales and marketing > Common > Return orders > All returns orders), Create New > Enter customer details plus a retuns reason code > (opens up the returns order form, line details) on the action pane tab labelled ‘Return’ / ‘Find sales order’, select the invoice to credit (this will bring in the items to return). Then expand the line details and enter a disposition code of ‘credit only’ (This should be the only one to select here). Print the returns order if required, then close the form …

Sales and marketing > Common > Sales orders > All sales orders > find the sales order of an order type ‘Returned order’ (created by the above) and invoice this. This will invoice the credit of the returns goods and close the return order raised previously.

Transactions will be as my example

Can i know why we have only one option in return order level ?

What about the other Disposition codes impact and can you briefly explain about that ?

Thanks in advance .

The ‘other’ disposition codes are available within the ‘Arrive process’ … and the item arrival journal …

If you leave the dispostion code blank when you 1st create the returns order, then follow the process through the ‘arrival overview’ process (Stock and warehouse management > Periodic > Arrival overview) … then create the ‘Item arrival’ journal from it … In the item arrival journal (Stock and warehouse management > Journals > Item arrival > Item arrival). you will need to allocated a disposition code, this then dictates what will happen next

Hello Martin

Getting an error on similar scenario with disposition code “Credit Only” for Return Order

I created RMA. Selected SO and Items to be returned using the Find Sales Order, Selected as Disposition Code “Credit Only”/. Go to the SO that gets created and trying to POST Invoice.

"Quarantine order - Start ( Quarantine Msgs) …

Qty X cannot be picked because only 0.00 is/are available from the inventory.