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.
When refunding an order in Commerce7 the new order created as the refund will automatically get 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 set the Fulfillment Status on the original order to 'No Fulfillment Required.'
If product is still getting shipped you can update the fulfillment status as you would follow the steps to fulfill the order based on your fulfillment workflow.
In some cases, it is recommend to add a step to your workflow for refunded orders and go to the orders that you have refunded, selecting the fulfillment tab and manually select 'no fulfillment required'.