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Return orders from MPOS with info-codes to be placed in different warehouse? (AX 2012 R3 MPOS)

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Hello,
I have a slight issue where the in the POS, when returning a Product, an infocode such as "defect" could be given.
Everything is set up and info codes created and works, however when I perform a return as an info-code "defect", I want it to be returned to a different warehouse than the store itself. I've viewed "Return locations" form the retail module which is supposed to handle this kind of situation for specific info codes.

The issue I am having is that I have the store warehouse "STORE" and I have Another warehouse "RETURN". If info-code "defect" is chosen during a return:

Then I performed a full sync for that store, Went back, did a return, uploaded the transactions and posted inventory and so on, however it does not register that this retail location is set for the info code but still returns it to location "STORE".

The Products we have is only SITE and Warehouse in the Storage dimension Group, this I have not entered a location, however i tested to add a location the form shown above but it still does not work.

Am I missing somethin? Must the storage dimension Group include location?

Many thanks,
Mannan


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