This is the Disposition Management logic for the year 2020 and beyond. For prior to 2020, see the article Disposition Management Prior to 2020.
The Disposition Management page, under the Accounting tab in Stratify, is where decisions on the Sellable or Unsellable condition of items that have been removed from Amazon FBA, or that are Merchant Returns (MFN).
Not sure if it should be Sellable or Unsellable? When + Why to Change a Removal to Sellable or Unsellable explains this in detail.
If a Merchant Fulfilled item is returned by your customer, you can assess the disposition of the item once you have it, and mark it as Sellable or Unsellable on this page.
Note: Only MFN returns dated on or after July 1st, 2019 will appear in Disposition Management page. For refunds prior to that date, you will manage these in the Refunds page. If you were a Replenishments beta tester, MFN returns dated on or after January 1st 2019 will appear in the Disposition Management page.
Marking an MFN Return as Sellable
When you mark an MFN refund as Sellable, you will receive a cost/unit credit.
In the event you want to sell it on Amazon again, list it as you normally would. Listing it again will add that item back into your inventory, with the relevant information (cost, purchase date, supplier, etc).
If you sell it through another marketplace and would like to capture the buy cost, you would create an entry under Accounting>Other Income for the sale and one under Accounting>Other Expenses to account for the cost of the item and any selling expenses.
The support article "Can inventoryLab Handle Additional Marketplaces" has more information on this process.
Marking an MFN Return as Unsellable
As a rule of thumb, any item that you can or will no longer sell again, you will mark as Unsellable.
If you mark an MFN return as Unsellable, the buy cost will display as $0 as it will remain captured with the original sale.
Once you make the decision to remove an item from an FBA warehouse, it will be removed from your inventory in Seller Central upon completion of the removal order. This will also be removed from your inventory in Stratify once the inventory sync has completed since the removal. Once the item is returned to you, you can decide whether the disposition from Amazon was correct for that item.
To view any Order ID's associated with these removals, simply click on the number within the Returned column.
This will cause a pop-up to appear listing these Orders:
*Clicking on this Order ID will open a new tab displaying this order within your Refunds report*
As noted above, you can set the default to SELLABLE, UNSELLABLE, or go with the AMAZON DISPOSITION. You can make manual changes once you receive the item and assess its condition.
We will capture the buy costs as follows:
If you mark the item as Unsellable:
The item will receive a Cost/Unit debit using the active Cost/Unit. This includes removals due to FBA customer returns from 2020 and beyond, as you received a Cost/Unit credit on the refunds page when it was returned back to your inventory.
If you mark the item as Sellable:
The Cost/Unit will show as $0 and you can account for the item manually in Other Expenses if you sell it on another marketplace, or send it back to Amazon to be accounted for when the item sells again. This includes for removals due to FBA customer returns from 2020 and beyond, as you already received a Cost/Unit credit on the refunds page when it was returned back to your inventory.
For more information, see Accounting for Removal and Disposal Orders
When you have an item disposed of by Amazon, the item will be removed from your inventory. InventoryLab will automatically capture the fees that Amazon charges to dispose of items for you or to send them back to you.:
For disposals, we will capture the buy costs as follows:
The item is given a Cost/Unit debit. This includes for disposals due to FBA customer returns from 2020 and beyond, as you received a Cost/Unit credit on the refunds page when it was returned back to your inventory.
For more information, see Accounting for Removal and Disposal Orders
This page displays the following columns:
- Type of Disposition
- Amazon ID for the transaction
- Item Information, including the Title, MSKU, and ASIN, along with the Disposition selected for the item, Sellable or Unsellable (or if Amazon Disposition was used)
- Date Edited
- Buy Cost (if applicable to this disposition and adjustment is made to the COGS in the Profit and Loss report)
You can sort the columns by Date, Type, Item Information, Edited, and Buy Cost Adjustment. Do this by clicking on the column headers.
You can also export the page by clicking on the Export button in the upper right corner of the page. This will result in a sortable .csv file.
In the upper right corner of the page you can select to display only certain types of items on the page by clicking on the button that defaults to the label "All" :
Your options are:
- MFN Return
The Disposition Management page shows the current disposition, which is either set on this page, defaulted based on settings by the user (see Default Disposition below), or defaulted to the Amazon disposition:
If the Amazon Disposition is in blue, it means you have manually chosen the disposition or it is set to default to this disposition. By clicking on the Use Amazon Disposition link, it will immediately change the disposition for ALL of the items in this return to the disposition Amazon chose:
To change this back, click on the down error for Sellable or Unsellable. You can either input the number or use the up/down arrows to make the selection on how many to change:
After changing it back, the Use Amazon Disposition becomes active again, and can be used again in the future.
The disposition status can also be set to default, if you find that most of them are coming in with one condition or the other. Or you can also choose to just accept the Amazon disposition as your default.
To select a default disposition for items that have been removed, or for Merchant (MFN) returns, click on the small gear icon under the blue Advanced Search button:
Once clicked, your options appear below in a drop down (you can also access this by clicking on your name in the upper right corner of the page and selecting Settings>Advanced Settings):
Searching can be done on this page as well. You can search by ID, Title, MSKU, Return Order ID and ASIN.
Simply input the what you want to search for in the search field. It will perform the search as soon as you are done entering the information and display the results.
If you need to change the default search period from All, you can do so by clicking on the blue Advanced button in the upper corner of the page, to the right of the search field:
By clicking on the button labeled All, you can select one of the presets:
Or you can create a custom time frame by clicking on the Within button, and changing it to From. Once this is done, you will see two date fields to select a start date and an end date for the search:
Once you set the dates, click on the blue Search button and your results will populate the page.