Why does my refunded order still show a status of "Not Fulfilled"?

When an order is refunded in Commerce7, we do not assume the product on the order is always returned. In some cases, you may refund an order but it is still required to be shipped.

After you've refunded an order, the new "refund order" will automatically have a status of 'No Fulfillment Required', while the original order that you refunded will require you to update the fulfillment status accordingly.

If product is physically getting returned you can change the Fulfillment Status on the original order to "No Fulfillment Required" by going to the Fulfillment tab and clicking "No Fulfillment Required"
If product is still getting shipped you can continue to update the fulfillment status as you would for a normal order.