Auto-refund and write-off process during subscription cancellation
This task outlines the automatic refund and write-off process during subscription cancellation, including steps for generating credit memos and handling payments.
If the cancel and refund request, including the write-off setting, is submitted, the refund and write-off process is automatically initiated as follows:
- The subscription is canceled.
- A credit memo or final invoice is generated depending on the cancellation effective date. The credit memo is generated for covering any unconsumed services of the subscription.
- The payment is unapplied from the invoice.
- The refund is returned to the end customer account of the payments.
- The credit memo is fully or partially applied to the invoices depending on the refund amount.
- Depending on your settings, more credit memos could be created to write off the outstanding balances on the invoices.