Dynamics AX has this very useful feature of using the disposition codes. Most of the consultants, IT team and biz users must be aware of this. But there is one disposition code which usually most of us have overlooked (at least I have). That’s the “Credit only”.

You could use this disposition code where a customer claims that the product does not work/is spoiled or has misplaced it, and does not return it you. Or it could be a genuine case where the customer has paid for the product but the carrier company might have misplaced it, and you would need to refund the customer or book a credit note for him. Well here is one solution for you.

Firstly, as opposed to the other disposition codes, you would need to assign the credit only disposition code to the items on the return order – during the creation itself.

1. I have setup a disposition code 21 as shown below.
2. Create a return order and select the items/Sales orders that are being returned. Assign the disposition code on the line as shown below. As you can see, the drop down only shows 1 which is 21 – which is the credit only type. 
3. When you have a line only with “Credit only” disposition code, the Packing slip button would be disabled on the return order. You will need to locate the sales order and directly invoice it.
4. Set the quantity to “All” for the Quantity field while posting the invoice and post it.
5. This completes the posting of the invoice and below would be the accounting entries that would be created
   1. For the usual return.
   2. Additional entries along with the return.

So what does the credit only do different from a Scrap or Replace and Scrap?

1. It does not bring the item/product back to the inventory/stock and does not require the warehouse worker to perform registration or item arrival.
2. It does not create a quarantine order and scrap the item via the quarantine order which is the way which Scrap or Replace Scrap work.
3. However, accounting wise, the effect still remains the same, but the vouchers for these are separately posted in Scrap or Replace and Scrap as opposed to a single voucher entry in case of Credit only.

I found that credit only did not work with items which had tracking dimensions enabled. However, if anyone finds a way to solve that, please do comment on this post.