Hi @Daniel Carter ,
Cross-store returns are a standard process, and when an item is returned to another store, that store’s inventory will temporarily increase. Creating a transfer journal to move the inventory back to the original store without any physical movement is not the right approach.
The issue is more operational around replenishment, the replenishment team should plan based on the current on-hand/availability at each store. Also, the original store should not be considered negative simply because a customer may return the item later which will replenish the inventory, the original sale has already reduced its inventory, and any future return should be treated as a new inventory receipt at the store where it is physically returned.
The recommended solution is to keep the standard cross-store return process and not create automatic transfer journals without physical stock movement. Store inventory should reflect the actual physical location of the returned item, while the replenishment team should manage temporary inventory imbalances based on current availability. This avoids unnecessary inventory transactions and keeps D365 aligned with the actual physical stock position.
Regards,
Syed Haris Shah
