Provided a purchase return has not been despatched or credited either in full or part it can be cancelled, regardless of whether the return is on hold or not. Cancelling a purchase return changes the status of the return from live to complete. If you have set the system to save cancelled orders, the return information is automatically stored. If you are not saving cancelled orders, the header information containing the supplier details is stored, but the item lines detailing the goods returned to the supplier are removed from the system.
Open: Purchase Order Processing > Purchase Returns > Amend Purchase Return Status.