The Disposition Management page, under the Accounting tab, 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.

Disposition Management Overview

MFN Returns

Removals

Disposals & Liquidations

This page displays the following columns:

You can sort the columns by Date, Type, Item Information, Returned, Edited, and Buy Cost Adjustment by clicking the arrows in the column headers.

The default view of this page shows all Removal, Disposal, and Liquidation transactions. In the upper right corner of the page, you can select to display only certain types of transactions on the page by clicking the button that defaults to the label All.

Your options are:

The Advanced Search can be utilized to view the entries within a specific timeframe or a custom date range. You can also search by Transaction ID, Title, ASIN, MSKU, or by scanning the UPC.

You can Export any view you select.

The disposition status can be set to default if you find that most of them are coming in with one disposition or the other. You can also choose to just accept Amazon's disposition by default for FBA removals.

To select a default disposition for FBA items that have been removed, or for Merchant (MFN) returns, click on the gear icon under the blue Advanced Search button:

You will be brought to the Accounting page in Settings where you can set up the default dispositions.

Note: These settings will be applied to FBA Removals and MFN Returns going forward. It will not affect past transactions.

The Disposition Management page shows the current disposition for FBA removals and MFN returns, which are either set on this page manually, defaulted based on your Default Disposition Settings or defaulted to Amazon's Disposition. The disposition controls Buy Cost Adjustment for the items.

If Use Amazon Disposition is blue, it means it is not being used and you have either manually chosen the disposition or it is set to default to certain disposition status.

By clicking the blue Use Amazon Disposition link, it will immediately change the disposition for ALL of the items in the removal to the disposition Amazon chose.

If Use Amazon Disposition is gray, it means that Amazon's disposition is currently being used.

To change it, click the down arrow next to either Sellable or Unsellable. You can either input the number of units you'd like to change, or use the up/down arrows to make the selection.

The Use Amazon Disposition link will become blue and can be clicked to match Amazon's disposition as described above.

If a Merchant Fulfilled item is returned by your customer, you can assess the disposition of the item once you have received it back and mark it as Sellable or Unsellable on this page to control how the cost for it is handled.

When you mark an MFN return as Sellable, you will receive a cost/unit credit so the buy cost can be accounted for with the next sale without doubling it as an expense.

If you relist the item on Amazon, you would list it as you normally would in InventoryLab. 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. For more information, please see- Can InventoryLab Handle Additional Marketplaces - eBay, Etsy, etc.?

If you mark an MFN return as Unsellable, it will not receive a cost/unit adjustment and the Buy Cost Adjustment will display as 0.00. In this case, the cost/unit remains captured as an expense with the original sales transaction.

As a rule of thumb, any item that you can or will no longer sell again, you will mark as Unsellable.

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. It will also be removed from your inventory in InventoryLab once the inventory sync has been completed since the removal.

Once the item is returned to you, you can decide whether the disposition from Amazon was correct for that item and mark it accordingly on the Disposition Management page when the order is complete.

If there are any Order IDs associated with the removals prior to 2020, click on the number within the Returned column to see them. This will cause a pop-up to appear listing the Order IDs.

Click the Order IDs to open a new browser tab displaying this order on your Accounting>Refunds page.

As detailed above, you can set the default to disposition to Sellable, Unsellable, or use Amazon's disposition. You can make manual changes as needed once you receive the item and assess its condition to control how the cost/unit for the item is accounted for.

If you mark a removal as Sellable, it will not receive a cost/unit adjustment and the Buy Cost Adjustment will display as 0.00. This includes 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.

If you relist the item on Amazon, you would list it as you normally would in InventoryLab. 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 can do so under Accounting>Other Expenses.

If the removal is due to a customer return and the Amazon Disposition is Sellable, and you leave it as Sellable, it will not receive a cost/unit credit and the Buy Cost Adjustment will display as 0.00. This is because you already received a cost/unit credit on the Refunds page when it was returned back to your inventory.

If the removal is due to a customer return and the Amazon Disposition is Unsellable, but you change it to Sellable, we will provide a cost/unit credit. This is to ensure the cost/unit is not doubled as an expense when the item sells again.

If the removal is not due to a customer return and marked as Sellable, it will not receive a cost/unit credit and the Buy Cost Adjustment will display as 0.00.

If you relist the item on Amazon, you would list it as you normally would in InventoryLab. 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 can do so under Accounting>Other Expenses.

For more information, see- Accounting for Removal and Disposal Orders

If you mark a removal as Unsellable, it will receive a cost/unit debit using the Active cost/unit for the MSKU on the Inventory>FBA page. 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 the removal is due to a customer return where the Amazon Disposition is Unsellable, and you leave it as Unsellable, it will not receive a cost/unit adjustment. The Buy Cost Adjustment will display as 0.00 and the cost/unit remains captured as an expense with the original sales transaction.

If the removal is due to a customer return where the Amazon Disposition is Sellable, but you change it to Unsellable, it will receive a cost/unit debit to offset the cost/unit credit it received on the Refunds page when it was returned back to your inventory.

If the removal is not due to a customer return and is marked as Unsellable, it will receive a cost/unit debit to track the cost as a loss.

For more information see- Accounting for Removal and Disposal Orders

When you have an item disposed of or liquidated by Amazon, the item will be removed from your inventory. InventoryLab will automatically capture the fees that Amazon charges to dispose of the items.

The cost/unit for the item is also captured as a loss since it can no longer be sold. The accounting goes as follows:

For disposals, the item is given a cost/unit debit using the Active cost/unit for the MSKU on the Inventory>FBA page. This includes 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.

Liquidations will receive a cost/unit debit to track the cost/unit as an expense.

If a disposal is due to a customer return where the Amazon Disposition is Sellable, it will receive a cost/unit debit to offset the cost/unit credit it received on the Refunds page when it was returned back to your inventory.

If a disposal is due to a customer return, where the Amazon Disposition is Unsellable, it will not receive a cost/unit adjustment and the Buy Cost Adjustment will display as 0.00. In this case, the cost/unit remains captured as an expense with the original sales transaction.

If not due to a customer return, it will receive a cost/unit debit using the Active cost/unit for the MSKU on the Inventory page.

Liquidations will receive a cost/unit debit to track the cost/unit as an expense.

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