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The previous process for handling customer returns in D365 was manual, lacking a bit of flexibility and reactivity. It required creating a return order before the goods arrived at the warehouse, which posed significant challenges. The old system did not support blind customer returns — returns that arrived at the warehouse without prior notice from the customer had to be dealt with on a case-by-case basis and could create congestion in the inbound operations.

Additionally, companies seeking a more flexible solution struggled with the rigidity of having to create an upfront return order even when customers informed them about returns.

These limitations are addressed with the new D365 return process; the new feature allows for blind returns, enabling the receipt of goods without the creation of a prior return order.

This flexibility ensures that return orders are automatically generated when goods arrive and registered in the inventory using mobile devices. Furthermore, during outbound shipments, return orders can be pre-created with return labels, making the process of returning goods easier for the customer and receiving returned goods easier for your warehouse.

Old process

The warehouse worker, who had only access to a mobile device, had to rely on support from the office staff, which must be created ahead of the receiving in D365.

The new process

The new process for unannounced returns is divided into two main parts:

Blind return process enables a worker/user to create an RMA directly from the mobile device completely from scratch where no RMA order or return details record exists in advance and where no original sales order or shipment must be specified during receiving.

Return details process can be seen as the opposite of the blind return process. It enables a user to plan a return by creating a return label while packing a sales order. A record automatically generated when an order is shipped contains the Information required to process a return, such as the return ID, original order ID, shipment ID, order lines, and return-until dates.

Prerequisites

Before you can use the features that are described in this article, your system must meet the following requirements:

• To receive unannounced sales returns, you must be running Supply Chain Management version 10.0.39 or later.
• You must be running Supply Chain Management version 10.0.39 or later to use the integration with small parcel shipping (SPS).
• To print license plate labels from a mobile device, you must be running Supply Chain Management version 10.0.40 or later.

Part 1 - Blind return

Configurations

We will only check the new configuration related to the new features. I will assume that the usual suspects are already set up: work template, location directives, wave template, disposition codes, etc.

1. Enabling parameters

First, we need to assign a number sequence code to:

• Return ID
• Load line inventory pick

Go to Warehouse Management > Setup > Warehouse management parameters.

You can set the Number sequence code field to the number sequence you want to use or create a new one.

^{Fig. 1 - Warehouse management parameters - number sequences}

Then, we need to enable the following parameters:

Go to Warehouse Management > Setup > Warehouse management parameters – General

• Enable return details creation & Enable return order creation from mobile device

The first one will allow the generation of return details when closing containers and confirming shipments whereas the second one will enable return orders to be created from a mobile device flow using a mixed license plate to receive planned lines.

^{Fig.2 – Warehouse management parameters – returns}

• Enable Sales load line picking route option from loads parameters.

^{Fig.3 – Warehouse management parameters – Loads}

This setting allows for the linking of load lines to sales line inventory transactions at the shipment level. It utilizes the Load line inventory pick number sequence to establish this connection once the work is finished and the containers are sealed.

2. Return item receiving policies

Go to Warehouse Management > Setup > Mobile device > Return item receiving policies

Before you add a new menu item to the mobile device, you need to prepare a Return item receiving policy.

This step makes sure you can connect the menu to the right return process, either Blind return or Return details, to manage returns smoothly.

^{Fig. 4 - Return item receiving policies}

3. Set up mobile device menu items

We're looking to allow our team to create RMAs straight from their mobile devices, so we'll need to get a menu item ready for that. It's all about making things more efficient and mobile-friendly.

Go to Warehouse management > Setup > Mobile device > Mobile device menu items.

^{Fig.5 – Mobile device menu items for Blind return}

Work creation process – Select Return item receiving.

Just like when you're handling sales order returns, you can choose to show the disposition code. This lets the worker pick one that affects the inventory status, work template, and location directive.

Remember, the return item receiving policy ID you select will determine the process linked to the menu item, whether it's Blind return or Return details.

Demo - Blind return

As mentioned previously, the process starts directly in the warehouse. The worker will use the menu item Blind return to begin receiving the unannounced product.

^{Fig. 6 - MDMI Blind return}

The worker will enter the following details:

• Customer account number
• Item
• Quantity
• License plate (can be auto-generated)
• Disposition code (optional)

^{Fig.7 – MDMI Blind return processing}

A license plate is required to receive goods in the receiving location.

Next is optional, but I recommend you input the disposition code to determine the put away process and inventory status. Otherwise, the disposition code will have to be input at a later point during the mixed license plate receiving process.

^{Fig.8 – MDMI Blind return processing, selection of the disposition code}

At this point, we have created a license plate receiving record with the information previously input. 

^{Fig.9 – Mixed license plate receiving}

What is interesting is the possibility of creating an additional line to be received within the sale return order by repeating the same steps on the mobile device.

^{Fig.10 – Mixed license plate receiving with multiple lines}

The next step is to receive this license plate. At first, the mixed license plate receiving screen was the only way to complete the MLP receiving for the return process. 

However, Microsoft did great by adding this process directly in the MD flow via this button LP complete.

^{Fig.11 – MDMI completing the mixed license plate receiving}

The worker checks the summary and validates it.

^{Fig.12 – MDMI summary of the mixed license plate receiving}

With this, the mixed license plate has been received.

^{Fig.13 – Mixed license plate receiving status received}

With the license plate receiving process executed, the system will automatically complete three steps:

• Post the item arrival journal; the items have now been received at the receiving location.

^{Fig.14 – LP Max-02 is available at the receiving location (RECV)}

• Create the put away work.

^{Fig.15 – Created work for the return order and LP Max-02}

• Create a new return order with the details from the mixed license plate receiving steps. Each line of the return order has been registered.

^{Fig.16 – Created return order showing the line for the mixed license plate receiving} 

Keep in mind that since the return order has been created using a mobile device and is not linked to a sales order, some fields are still blank and might need to be updated, like the return reason code and the financial information, such as the (returned) unit price.

Continue with the series and read about the Return details process with Part 2 here.