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Supplier Returns


Sometimes, goods received from suppliers need to be returned. Whether this is due to a faulty item, wrong item received or dependent upon another factor, capturing the reasons for returning goods is essential. Each reason and returned transaction can then be closely controlled and reviewed periodically for business insight and analysis.

Return Reason Codes


Return reason codes are documented on transactions whereby purchased goods are returned to a supplier. These are created using the following;

Return Action Code: This is a short reference that identifies the return reason code name. It must be clear and recognisable so that it can be applied to transactions and reporting filters throughout the system. This field is restricted to 10 characters.

Return Action Name: The return reason code name expands on the return reason code and documents the name of the return reason. This field is restricted to 60 characters.


Return reason actions are used to provide additional details on return transactions which can be used for reporting and decision making. For example, if a business is continuously returning faulty goods to a supplier they may wish to cease trading with them.


Business X purchase shampoos and conditioners from a supplier that are shipped in stacked crates. The supplier has had production issues recently and have been applying faulty lids to their products. Upon arrival at business X, the shampoos had fallen over and leaked which had then dripped into the stacked crates below. Business X then had to return the products to the supplier with a return reason code of FAULTY.

Business X then purchased 10 crates of unscented hairspray from a supplier. Upon receipt into warehouse, when checking the received goods against the delivery note, the goods in team noticed these hairsprays were scented. Business X then had to return the products to the supplier with a return reason code of WRONG GOODS.

Business X configured their return reason codes as;







Consider all reasons you may return goods to a supplier and document a naming convention and code.

In Dynamics 365

In Dynamics 365 the return action screen is mastered within procurement and sourcing. Once created, reasons can be applied to return transactions. This must be maintained by a user.

Return Actions
APQC Framework

Please find below the relevant PCF ID’s.

Level 1 Category: 10216

Level 2 Process Group: 10279, 10280

Level 3 Process: 10301, 10302