In the Microsoft Dynamics AX program, a return order is a type of sales order that is marked as a Returned Item. Therefore, the Sales orderform is used for performing invoice updates of return orders instead of the Return ordersform. This Microsoft Dynamics AX functionality also supports the business processes of many companies that choose to have return orders and sales orders invoiced at the same time and by the same person.

The actual credit note must be updated directly from the returned item type of sales order, or on the Posting invoiceform ( Accounts receivable> Periodic> Sales update> Posting invoice.

When you set up the invoice update for batch processing, the sales order of type Returned Item must have a return line status of Received, which indicates that the order's packing slip has been updated.