When you refund an order in Commerce7, a new order is created with the negative quantity. As long as the refund contains order items, the new order will flows to ShipCompliant. The new order with the negative product quantities will not flow to your fulfillment house from ShipCompliant; learn more here.
At this time, your workflow should be to clearly communicate with fulfillment to let them know whether or not the original order requires shipment (in some cases there might be a partial return or full return of product).
We do not recommend deleting orders in ShipCompliant.
Do refund orders automatically void in ShipCompliant?
Refunding an order does not void the original transaction in ShipCompliant. When a refund is performed in Commerce7, another order will be sent to ShipCompliant. The refund order will have a negative value and negative quantity to offset the values from the original order.
If you are using ShipCompliant to push order information to a Fulfillment House, you will need to manually delete the fulfillment order in your fulfillment system.
Your refund order will be reported on the day the refund is processed. For example, a person buys a bottle in June and you issue a full refund in July. You should remit the tax in June and claim a credit in July.
Why refund orders don't flow to fulfillment from ShipCompliant?
If you are configured to have orders flow automatically to fulfillment it becomes a bit tricky. There is no way to stop a single order from going to fulfillment (that's part of the SC/Fulfillment integration) and since you may not always want a refunded order fulfilled, it's set up so that no refund orders flow to fulfillment.
Also - if ShipCompliant was only used for compliance (take fulfillment out of the equation), then this is correct process for reporting.
- You charge an order → you charge tax→ you send it to SC
- You refund it→ you refund tax→ you send it to SC
- If the order falls over a month end, you charge & remit tax for the order in Feb → in March you refund and claim a tax credit
This is best practice for accounting and why we have set this up this way.