...
2) Click Functions>Receive Payment
3) For How Paid, select AP CREDIT
...
5) Click Apply Payment(s)
And then confirm
6) Bring up the AP record for the Return Order (not the AP CREDIT created in step #3)
Browse to Bookkeeping - Accounts Payable
7) Click Functions>Pay by Credit Invoice
8) Under “Credit Invoice Number”, click the […] button, and select the CREDIT AP created in step #3
9) Click Apply