Specify how to dispose of returned items

When you handle a return order, you must specify a reason return code to identify why the product is being returned. You must also specify a disposition code and a disposition action to determine what should be done with the returned product itself.

A disposition code can be applied when you create the return order, register item arrival or packing-slip update an item arrival, and end a quarantine order.

You can define any disposition codes that you need in order to support the business processes. The following table provides a set of typically used codes to assign return-item disposition.

Disposition type	Common code	Description
Disposal	SC	Scrap/Destroy
Disposal	DC	Donate to Charity
Disposal	TD	Third-Party Disposal
Disposal	SL	Salvage
Disposal	TS	Third-Party Sale (Secondary Markets)
Repair/Modify	RW	Rework
Repair/Modify	RF	Remanufacture/Refurbish
Repair/Modify	MD	Modify
Repair/Modify	RP	Repair
Repair/Modify	RV	Return to Vendor
Other	AI	Use as is
Other	RS	Resale
Other	EX	Exchange
Other	MS	Miscellaneous

For each disposition code that you define, you must select a disposition action. 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 following table provides the disposition actions and their definitions.

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.

Select a disposition code for a quarantine order

1. Go to Inventory management > Periodic > Quality management > Quarantine orders.
2. For an existing quarantine order, select an action from the Disposition code field on the Overview tab.

See also

• Quarantine order (form)
• Disposition codes (form)