Inventory disposition

Inventory disposition is a way to tell the application what you will do with the inventory. You can return inventory items to stock, scrap items, or perform no cost postings. If you return inventory to stock, then the stock-on-hand is increased. If you scrap items, then the stock-on-hand remains unchanged. If you choose no cost postings, then you do not return items to stock but still refund the customer. You must decide on an inventory disposition for each returned each 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	Accounts Receivable Sales Cost of Goods Sold Inventory	Credit Debit Credit Debit
Scrap inventory	Accounts Receivable Sales Cost of Goods Sold Cost of Goods Sold Offset	Credit Debit Credit Debit
No cost postings	Accounts Receivable Sales	Credit Debit