Orders may need to be canceled entirely or partially if a customer returns products. Below, we explain the key steps and considerations when handling cancellations and returns.
You can access these options under Sales > Open order > Cancel order / Create return.
Canceling an unprocessed order
For orders that have not been processed, cancellation is straightforward. Simply click Cancel order, and the entire order will be canceled.
Once confirmed, the system automatically generates a return record for the entire order. Orders are never deleted but are instead recorded as returns with equivalent negative values. This keeps reports and accounting accurate.
If the order has already been paid for, you must also issue a refund to the customer.
Creating a return for a processed order
For processed orders, partial or full cancellations must be handled by creating a return. Click Create return and select the items to be returned.
In the item selection menu, you can add specific details for each product and choose whether returned items should be restocked, sent for inspection, or marked as waste. Selecting Restock automatically adjusts the inventory quantity for the returned products.
Managing returns
All created returns are centrally managed. Learn more about return management.
Refunding payments to the customer
Refunding the payment is an essential part of canceling orders or processing product returns. If the customer paid during the order process, follow these steps:
Automated refunds
If your store uses the Klarna Checkout payment service, refunds are handled automatically. Information about returns is sent to Klarna, and they process the refunds directly to the customer.
Manual refunds
For other payment methods, refunds must be processed manually. For example, with the Stripe payment service, log in to the merchant portal, locate the customer's payment, and issue the refund.