What happens with Landed Cost when you perform a Returns Transaction in GP2010?

This question popped up on the Microsoft Dynamics Community today so I thought I'd share the answer here.  

The new functionality in GP2010 that edits the original PO for a purchase return (or creates a new one if the original is closed) is awesome.  Not sure why it took this long to add that functionality but it is what it is.  However, there is no facility in the Returns Transaction to reverse the Landed Cost on the original receipt, so GP writes the value of the Landed Cost to Purchase Price Variance.  Not the ideal way to handle it but at least it doesn't leave that cost sitting in inventory, if the return is an inventory item.

P.S. not sure what the image above is displayed washed-out but if you click on the image to enlarge it, it displays properly.