Cancel or return
The order cancellation function may not be available if the order has already been fulfilled. However, you can still cancel the order by making a return.
If the order is not fulfilled, you can cancel it by clicking the Cancel Order button at the top of the order page.
If the order has already been fulfilled, it is not possible to cancel the order, and you will have to create a return for the order.
Canceling an order
Go to Sales.
Open the order you wish to cancel.
Click on the Cancel Order button.
Select the order status after cancellation (by default, Canceled).
Enter the reason for the cancellation (optional).
When you cancel the order, the system automatically creates a refund order, which you can find later in the Sales > Returns section. The return is created so that it will be saved in the system, and, for example, the sales report will be correct. The stock quantities of the products will also be returned to their original values (as before the customer placed the order).
Refunding the payment
When using the Klarna Checkout payment service, the order amount will be refunded to the customer if you remove the authorization (see instructions below). For other payment services, the money should be returned to the customer separately.
Removing the payment authorization (in Klarna Checkout)
If an order is paid using Klarna Checkout, authorization is created. By default, the authorization expires after 28 days. If the customer has paid by payment card or online bank, you should manually remove the authorization to ensure the customer gets the money back faster. You can do this as follows:
Click on the gear icon in the payment section.
Turn off Automatic Capture.
Click Cancel Order.
After completing these steps, the authorization will be removed, and Klarna will refund the amount to the customer.