Enable Item Disposition in Transaction Updates

 Hi Folks,

Was looking at Store Admin parameter" : "Enable Item Disposition in Transaction Updates".

From Imple guide ----- If Yes, the system reads the reason code in the web service message and performs the inventory adjustment. If the reason code is not present, the system processes the

return/void and increments the SOH. If No, the system does not look for the  reason code in the web service message.

Can someone explain this with a suitable example?

Thanks,

Regards,