Save As Is option in Depot Repair when creating the SR

When I create the SR in Depot Repair form, a message pops-up to decide whether to create an item instance for the item provided or not.

If I say yes, it would create an instance and shall populate the field in header.

If I say No, it will not create a new instance and obviously will not populate the instance in the header.

But, when you do a Return in the logistics line wont IB create an instance automatically when the item is received/Delivered to a subinventory?

I strongly believe it creates one when I make the receipt even though I said No at the time the pop-up gave me an option. Hope my understanding is corrrect?