Use this procedure to set up disposition codes that indicate how returned items are to be processed.

1. Click Accounts receivable> Setup> Sales order> Returns> Disposition codes .

2. On the Overviewtab, press CTRL+N to create a new disposition code.

3. Enter a descriptive name, select an action, and enter a description for the disposition code.

4. If you want to associate any customer charges with this disposition code, click the Misc. chargesbutton to open the Set up misc. chargesform.

5. If you want to define any external codes to match with the company's own disposition codes, click the External codesbutton to open the External codesform.