Yes, you will be compensated for undelivered items less the returned items to you. All the items that are not suitable to be returned to you will remain under the status "Items Undelivered" in the Seller Invoice.
You can view further details under the Finance section in Partner Portal:
Select a month to view more details.
Scroll down to the end to the Invoices of the Month:
Click on "Seller Invoice" to see which are the items that will be returned to you and items that remains as undelivered.
In this case, we are going to pay for the items at the retail price "discounted" of the RM commission.