Understanding Shopify Refunds in Xoro

Overview

When a Shopify order is successfully paid, a Customer Deposit is created in Xoro for the payment amount associated with the corresponding Sales Order.

When a refund is processed in Shopify, Xoro determines how to process the refund based on the current status of the Sales Order. Depending on whether the order is still in the fulfilment process or has already been shipped, the refund is processed through either the Customer Deposit or a Credit Memo.

• If the Sales Order is Released / Unallocated or Released / Allocated, the refund is processed against the existing Customer Deposit.

• If the Sales Order has already been Shipped, the Customer Deposit is not refunded. Instead, Xoro creates a Credit Memo for the applicable refund amount.

Xoro also updates the related Sales Order and Wave, when applicable, based on the order status and the quantity and amount being refunded.

Workflow

When an SO in Released/Allocated Status is refunded

When a Sales Order is in Released/ Allocated status, the order has already been allocated for fulfilment and has a Wave associated with it. If the customer requests a refund before the order is marked as Fulfilled/Shipped in Shopify, the refund is processed against the Customer Deposit created for the Shopify order.

Step 1: Create a Sales Order in Shopify by adding the required product.

Step 2: In Xoro, go to the Shopify Channel and open the Orders tab. Click Actions → Import by Order, enter the Shopify Order Number, and click Import to import the order into Xoro.

Step 3: After the order is imported, a corresponding Sales Order is created in Xoro in Released/Allocated status.

This status is determined by the Auto release sales orders and Auto wave sales orders settings enabled under the Warehousing section of the Shopify Channel's Orders tab. Since both settings are enabled, the Sales Order is automatically released and allocated.

Step 4: Go back to Shopify and open the same order. Click Collect payment, select Mark as paid, and select Cash on Delivery as the payment method. The order is then marked as Paid in Shopify.

Step 5: After the payment is collected, the Sales Order in Xoro is updated with a Customer Deposit equivalent to the payment amount collected for the Shopify order.

Step 6: Go back to Shopify and open the paid order. Click Refund to open the refund screen.

Step 7: On the Create a refund page, enter the item quantity, shipping amount to be refunded, and select the required Refund reason. Review the refund amount and other details, and click Refund to process the refund.

Step 8: After the refund is processed, the Shopify order is updated to Refunded when the entire order amount is refunded.

Step 9: Reimport the same Shopify order into Xoro from the Orders tab by selecting Actions → Import by Order, entering the Shopify Order Number, and clicking Import.

Step 10: After the order is reimported, Xoro processes the refund against the Customer Deposit associated with the Sales Order, and the Customer Deposit is marked as refunded.

Step 11: Since the complete quantity and amount of the unshipped order have been refunded, the Sales Order is Cancelled/Unallocated in Xoro. The associated Wave is also Voided.

Step 12: Click on the Customer Refund number to see the details of the Customer Refund record generated.

When an SO in Shipped Status is Refunded

When a Sales Order has already been shipped, the refund is not processed against the Customer Deposit. Instead, when the Shopify refund is imported into Xoro, a Credit Memo is created for the applicable refund amount and marked as Refunded.

Step 1: In Shopify, open the required order and click Mark as fulfilled.

Step 2: Enter the Tracking number and select the Shipping carrier. Click Mark as fulfilled to complete the fulfilment.

Step 3: After the order is fulfilled, click Collect payment and select Mark as paid.

Step 4: In the Mark as paid window, select Cash on Delivery (COD) as the payment method and click Mark as paid.

Step 5: In Xoro, go to the Shopify Channel and open the Orders tab. Click Actions → Import by Order, enter the Shopify Order Number, and click Import.

Step 6: After the order is imported, the corresponding Sales Order in Xoro is created with Shipped status. The Customer Deposit associated with the Sales Order is also applied to the order.

Step 7: Go back to Shopify and open the respective Sales Order. Click Refund.

Step 8: On the Refund page, enter the quantity and shipping amount to be refunded. Review the Refund amount and click Refund to process the refund.

Step 9: After the refund is processed, the Shopify order is updated to Refunded.

Step 10: Reimport the same Shopify order into Xoro from the Orders tab by selecting Actions → Import by Order, entering the Shopify Order Number, and clicking Import.

Step 11: After the order is reimported, Xoro identifies that the Sales Order is already Shipped. Instead of refunding the Customer Deposit, Xoro creates a Credit Memo for the refunded amount.

Step 12: Open the Sales Order and select the History tab to verify the refund-related transactions. The history displays the Credit Created and Credit Memo Refund records with their respective amounts and Refunded status.

Step 13: Go to the Credit Memo Centre and locate the corresponding Credit Memo.

Step 14: Open the Invoice Credit Memo to view its details. The Refunded amount is displayed, and the Remaining Amount is 0.00, confirming that the refund has been fully processed.