---
title: "Reason Code"
slug: "reason-code"
description: "Why is Reason Code important, and how to create a Reason Code? Step by Step guides containing all the information that you need to know to help you understand Canary7"
updated: 2025-08-05T15:09:00Z
published: 2025-08-05T15:09:00Z
canonical: "help.canary7.com/reason-code"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.canary7.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Reason Code

## 🛠️ Understanding Reason Code

### ❓ What is a Reason Code?

A **Reason Code** provides an explanation for specific user actions such as:

- Inventory **Adjustments** (e.g. Transfers, Status Changes, Stock Adjustments)
- **Shipment Holds**
- **Shipment Cancels**
- **Shipment Deletes**

Each reason must be linked to a **Reason Class ID**.

### 🔎 Accessing Reason Code

1. Open the **Navigation menu**.
2. Search for and select **“Reason Code”**.
3. Or go to **Configuration > System Setup > Reason Code**.

---

### ➕ Adding a Reason Code

Click on the Red Action Button![red action button](https://cdn.document360.io/4ed7d884-d42a-4c7e-a949-08033b57dc86/Images/Documentation/red%20action%20button.png), this will bring up a drop-down menu, and select "Add"

![add uom](https://cdn.document360.io/4ed7d884-d42a-4c7e-a949-08033b57dc86/Images/Documentation/image-1664033249991.png)

### Enter Required Fields

![Reason Code updated](https://cdn.document360.io/4ed7d884-d42a-4c7e-a949-08033b57dc86/Images/Documentation/Reason%20Code%20updated.png)

Fill in the required fields:

- **Reason Code** – Use a clear, descriptive name.
- **Reason Class ID** – Choose one of the following:
  - `Adjustment`
  - `Shipment Hold`
  - `Shipment Cancel`
  - `Shipment Delete`
- **Adjustment Type** (for Adjustment reasons only) – Link to a valid adjustment type.
- ✅ Ensure ‘Active’ is checked.

Once you have selected and entered the required fields, click on the submit button![submit button(1)](https://cdn.document360.io/4ed7d884-d42a-4c7e-a949-08033b57dc86/Images/Documentation/submit%20button(1).png) to add.