Disposition codes

A Disposition code records what actually happens to a returned item - as opposed to a Return reason code, which only records why the customer wanted to return it. It's assigned per line on a Sales return, since different lines on the same return can end up handled differently: one item goes back into inventory, another is scrapped, a third is rejected and sent back to the customer.

Every Disposition code carries one of six fixed Actions - these aren't configurable, only which code maps to which action is:

Action	Meaning
Credit	The item is returned to inventory and the customer is credited.
Credit only	The customer is credited without the item being returned.
Scrap	The item is scrapped and the customer is credited.
Replace and credit	The item is returned to inventory, a replacement order is created, and the customer is credited.
Replace and scrap	The item is scrapped, a replacement order is created, and the customer is credited.
Return to customer	The item is rejected and sent back to the customer.

Creating a Disposition code

Navigate to Accounts receivable > Setup > Sales invoices > Returns > Disposition codes and select New.

Define:

• Code: A short, unique identifier (e.g. DMGD_BOTTLE, REFILL). Cannot be changed after the code is created.
• Action: One of the six actions listed above.
• Description: What this code means in practice, since the code and action alone often aren't specific enough (e.g. Damaged bottle but usable scent. Transfer to new container.).

Select Save.

Editing and deactivating

Select an existing code and Edit to change its Description or Action - the Code itself stays fixed once created. Use Activate / Deactivate to control whether a code can be selected on new return lines without deleting its history; a Delete action is also available for a code that was never used.

Action doesn't yet drive how a return posts

Selecting a Disposition records intent, but as noted in Sales returns, the return's General Ledger posting is currently identical no matter which Action the line's Disposition code carries - inventory and cost of goods sold are always reversed the same way. Treat the Action column as documentation of intended handling, not as something the system currently enforces.

Assigning a Disposition

On a Sales return, each return line's Line details has a Disposition field - see Sales returns.