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Return order not updating on hand inventory AX 2012 R3 CU8

Helped a colleague with this issue, though we have configured the return locations as described here however the inventory is still not updating as expected on processing a return order

With an LCS issue search found the below solution here

To resolve this issue a change will need to be make to the Retail Product Hierarchy.
  1. Open the Retail product hierarchy form. (Retail > Setup > Category hierarchies > Retail product hierarchy).
  2. In the Retail product hierarchy form, on the Basic product properties FastTab, enter the return policy name in the Name field in the Return Policy group for the category in the product hierarchy where your product is assigned. 
  3. Also make sure you select the legal entity which you are using and assign Return Policy for that legal entity under the Basic product properties.
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