Steps to create Return order in AX 2012:

1. First step is to find invoiced sales order against which return order is getting created.\

2 .You can see above sales order which has quantity 1 which is already delivered to the
customer and invoice is also generated for the same.
3. Sometimes due to incorrect items received or due to some defects in the item, customer want
to return it to the company.
4. Before returning the items, we need to create a return order in AX for proper financial and
inventory updation in the system.
Note: Sales order should be in invoiced state to create return order.
5. Go to Sales and marketing --> Common --> Return orders--> All return orders

6. Click on Return order button (Marked red above) to create new return order.

7. Add the following information:

a. Customer number: - it should be same as the sales order customer number for which we
are creating a return order.
b. RMA number: It is a return material authorization number. It is a numbered authorization
provided by the company that permit the return of the goods from the customer.
c. Return reason code: These are codes which are specified in the system against the
possible reasons for return of goods from the customer as per company's policy.
Note: Some companies have some policies concerning return. For example, some companies
only allow defective product for return. In such case we can make it as reason and make the
return reason code mandatory so that system only take defective product as return.
d. Other details: Enter other details as per requirement.
8. Click ok.

Find sales order

9. Click on Find sales order to create return order lines with respect to customer invoice.

Note: The invoices posted against the customer will come in the find sales order form. We can
select one or multiple invoices and in each invoice, we can select one or multiple lines which will
come in the return order.
10. We can also edit the quantity in the particular line in case we don't want full return.
11. We can also specify the reason code for correction in the invoice which we are selecting.
12. Click ok.

13. You can see a line will get created in the return order with negative quantity as we are going
to receive item back.
Print Return order

14. Now the next step is to print the return order which is then send to the customer. The RMA
number is printed in the return report as well as the return reason code if it is mandatory. It tells
the customer that the company is agreed to receive the mentioned items with the quantity
specified.

Note: Upto this step, the return order status is "Created".

15. After this items will get received from the customer. There are two ways we can update the
system with this arrival.
a. Post the registration
b. Perform the arrival overview.
16. Here in this blog, we will explain the receipt of the items by registering them in the system.
Note: In the subsequent post, I will walk you through the Arrival overview process for return
order.
Registration:
17. In order to post the registration for the items which we are receiving, go to Update line-> Registration

Note:
Disposition code: We specify the codes in the system against the list of actions which we are
going to perform with the inventory received and with the customers.
18. Enter the disposition code--> Click ok.

19. Registration form will get open.

20. Click on Auto-create. (It avails the quantity per item for registration)
21. Click on Post all. (It will register the quantity in the system)

22. Once done, the Receipt status goes to "Registered" for the items. (See below)

23. Close the registration form as the return items are now registered in the system.
Note: After the registration, the return status of the return order changes to "Open"
Acknowledgement
24. Once items are received back, its time to send the acknowledgment to the customer.
25. Print the Acknowledgment and send it to the customer as a confirmation for the items
received by the company.

26. Now the next step in the return order is to post the packing slip.

Note: Packing slip will get posted in the return order in order to register the financial impact of
the received items in the system.

27. Click Ok to post the packing slip.

Invoice
28. Now the last step is to post the invoice for the items which we have received from the
customer.
Note: We cannot post the return sales order invoice from the return order form in AX.
29. Go to Sales and marketing--> common--> Sales orders--> All sales orders.
Note: We can get the return sales order number from the return order form. Go to above path
and filter by the return sales order number, we can see the sales order with the order type as
"Returned order".(See below)

30. You can see order in Delivered state as packing slip is already posted for the return sales
order from the return order form.
31. Select the order and click on Edit.

32. Go to the invoice tab--> click on Invoice button.

33. Click Ok to Post the invoice for the order.

Note: Once invoice is posted for the return sales order, the Return status for the return order
changes to "Closed" state.