'Returns' are parts that have placed in the virtual 'Return Bin'. Such parts are still in your possession but have yet to receive a return document number from the vendor. Note that the return bin is not necessarily a physical bin or box. It's any location set aside for placing returns until either the Vendor comes to pick them up or you ship them back for credit.
Returns are the opposite of purchases, in that you are essentially selling parts back to your supplier. Therefore, for simplicity, records for returns are included together with the purchase orders for each vendor, but with negative quantities that are highlighted in red.