Dynamics 365 Retail Return Locations Not Populating Based on the Return Subcode Selected in POS

After installing a hotfix (Ex, KB4090327) for Retail Return Location customers have been having issues with Return Locations not populating.

First, go to Retail > Inventory management > Return locations to create your Return location.

In my example if you select the Defect Subcode (1), the Returned item should go into the Central\Houston\Defected location (only if the item is tracking Locations). The Block inventory check box means that you are not able to sell out of the Defected Location.

The most common reason for the Return Locations not populating is:

  • The Return Location is not added to the Retail Product Hierarchy.

Go to Retail > Product and categories > Product categories.  Select a node that has your product and expand the Manage inventory category properties fast tab.  Select your company and set the “Return location”

Please note that there are two ways to get into product categories (through hierarchy setup in products menu and through Retail menu) when you go in through product setup – it doesn’t show the inventory configuration section which needs to be used for this, so users must open the form from retail menus.  I do agree that this is very confusing, and this is a big reason why this step is missed and reported as a bug (when this is currently not considered a bug).

  • The Site\Warehouse\Location is not Active
  • Verify a customization is not preventing the Return location from populating.