D365 Return Reason Codes & Disposition Codes: Why & When

Returns might not be the hottest topic, but today’s blog may just spice it up a bit for you! Dynamics 365 provides several tracking and reporting functions that streamline and create efficiencies for the return process, making life much simpler!

While Return reason codes and Disposition codes can both be found on the Return order, we will look at their purposes and differences.

Before Return reason codes can be utilized, they must first fall into a bucket called the Return reason code group. Both can be setup by navigating to Sales & marketing > Setup > Returns > Return reason code groups. Then create the groups with a description as to how each Return reason code will he handled within that group. The example below groups the Return reason codes by Charge/No Charge for the return.

Now that the pesky prep has been completed, we can proceed with the Return reason code setup. Return reason codes allow a company to easily track the reason for the return. They are completely customizable and additionally, their requirement on the Return order is customizable as well.  You may create as many as you want, with whatever reason you want. Again, in the Sales & marketing module, navigate to Setup > Returns > Return reason codes. Create your codes with a description and assign them to your newly created Return reason code groups.

You’ll be able to assign them on the Return order header and are a great way to track the reason for the Return order creation.

Now we’ll tackle Disposition codes. They differ from Return reason codes in that there are actions associated with each Disposition code. For example, you can create your own Disposition code but, you must assign it one of six actions: Credit, Credit only, Replace and credit, Replace and scrap, Return to customer, and Scrap. You can find them by navigating to Sales & marketing > Returns > Disposition codes.

Once the item is received in the warehouse, the registration line of the Return order is updated. Depending on the Disposition code, D365 will take the appropriate financial and logistical action for you!

If you found this blog helpful, check out:

The Preamble to Return Orders in Dynamics 365 for Operations