IB Instance not expired even after transaction subtype is cancellation on source trx type RMA fulfil

I am trying to create a return order for an order with an install base item and a serviceable item. My aim is to expire the install base instance and to terminate the service contract line so that full credit is given to te customer. The problem is that the install base instance is not changing status even after the return order is booked and line closed. I am using a transaction subtype 'Cancellation' and specifying the instance in the installation details window on the line level. I am using a Return for credit only workflow since we dont have