How to process 'Credit only' option during vendor return?

We have a disposition code 'Credit only' while processing the customer return.

This is to cover the business case, when we do not want customer to send us the goods back but will credit their account. 

Question is how to handle same scenario while dealing with vendor return where we are the customer?

So we do not want to send the goods to vendor but vendor will get our account credited back.

Is it through payment journal or?

How to scrap the product - using inventory journal manually or there is a out of box option available which scraps the product while invoice updating the purchase order? 

Any idea?

Regards

-Rahul