Return delivery against PO does not open up qty's?

We are working through a new WM process for having tighter control of returns. 
PO line is created for 120 pieces.
Inbound delivery created for 20 pieces, received with movement type 101.
Return delivery created to send back the 20 pieces.  Posted with mvmt 122.
So far so good, on the PO History tab the return cancels out the receipt and the net qty is zero - but the return delivery and it's 20 pieces are all by themselves and now there are only 100 pieces open on the new PO - creating a new inbound delivery only proposes 100. 
Shouldn't the entire qty of 120 pieces be open now?  That's what we want!  What did we do wrong??
Thanks!

Hi miller,
Kindly cancel  inbound delivery using t code VL09 for 20 pcs .
thanks
suresh

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