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Suggested answer

Disposition codes

Posted on by 19,790

Hi ,

Disposition code is used to specify what action to perform for an item that is returned by the customer. There are many disposition codes available in AX.

The question is that do we have any document or blog that how the voucher entries will be generated for each disposition code against sales credit note?

Do we have the option to know disposition code against posted sales packing slip or posted sales invoice level?

Thanks in advance.

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  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,877 on at
    RE: Disposition codes

     Disposition codes can be sued indicate whether additional action is required for a transaction e.g. to:

    • Scrap the returned item and provide a replacement item to the customer.

    • Return the item to inventory and credit the customer for the cost of the item.

    • Repair the item and return it to the customer.

    The disposition code itself may not  create a posting, whereas  undertaking those actions e.g scrapping an item  does in the same way you scrap any item without a disposition code.

    You can however associate Charges with a disposition code (as you would for a landed cost) as a simple way of allocating cost than e.g creating a rework production order you might just do the work of e.g, inspection and cleaning as a manual process outside the system and just collect a cost based on a charge, which itself is based on a disposition code.

    Click the Charges button to open the Set up charges form.

    There are many disposition codes suggested in help, but most of these are not pre-defined in the sense of posting profiles  but are just examples of codes you could define - you can use any codes you want.

    As Docs puts it:

    "The disposition action determines the physical and financial implications of the disposition codes. For example, the disposition action determines the physical handling of the returned item, the financial effect of the returned item, and if a replacement item must be sent to the customer. You can define an unlimited number of disposition codes according to your business needs, but there are only six predefined disposition actions that you can select from."

    The pre-defined codes are:

    Disposition action

    Description

    Credit

    Return the item to inventory and credit the customer.

    Credit only

    Credit the customer without requiring or expecting the item to be returned.

    Scrap

    Scrap the item and credit the customer.

    Replace and credit

    Return the item to inventory, create a replacement order, and credit the customer.

    Replace and scrap

    Scrap the item, create a replacement order, and credit the customer.

    Return to customer

    Reject the returned item and return it to the customer.

    The financial postings for those actions, are the same as they would be if you did those actions and did not process returns using  disposition codes - the only difference is any set up you have made for additional disposition charges.  

    So Ax uses the ledger accounts in the inventory posting under inventory Management - Setup - posting - posting.

    You can also add charges to reason codes.

    Note understand whether you need a quarantine warehouse for this to work. 

    this useful table is from Evert Bos

    try these posts:

    https://community.dynamics.com/ax/b/abhijeethelestheaxeffect/archive/2017/08/12/disposition-codes-in-ax-7-2012

    https://organicax.com/2016/02/19/sales-return-order-reason-code-charges/

    https://organicax.com/2016/02/19/sales-return-order-charges-on-disposition-codes/

  • lally Profile Picture
    lally 19,790 on at
    RE: Disposition codes

    Hi All ,

    Could any one reply on this ?

  • lally Profile Picture
    lally 19,790 on at
    RE: Disposition codes

    Hi Ludwig ,

    I'm explicitly looking for the disposition code wise ledger transactions ,but i believe technet does not have such details about ledger transactions .

    Do we have any option to know selected disposition code against posted sales packing slip or posted sales invoice level?

    Thanks in advance.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Disposition codes

    Hello lally,

    I am not aware of a blog post that details the ledger transactions created when item returns are posted.

    You can check the technet and the MS docs sites but I believe that you have already done that.

    This leaves you with the cumbersome tasks of testing the vouchers created for the different codes yourself.

    Best regards,

    Ludwig

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