Inventory disposition

Inventory disposition defines the action to take with the inventory. You can return inventory items to stock, scrap items, or perform no cost postings. If you return inventory to stock, then stock-on-hand is increased. If you scrap items, then stock-on-hand remains unchanged. If you select no cost postings, then you cannot return items to stock but still refund the customer. You must decide on an inventory disposition for each returned item or an entire order before you can release the return.

This table shows which accounts are affected based on each inventory disposition option:

Inventory Disposition	Account	Debit or Credit
Return to stock	Receivables Sales Cost of Goods Sold Inventory	Credit Debit Credit Debit
Scrap	Receivables Sales Cost of Goods Sold Cost of Goods Sold Offset	Credit Debit Credit Debit
Ignore (cost postings)	Receivables Sales	Credit Debit
Undecided	None	None