Canceled orders

If a customer cancels their order before shipment (partial or in full), a new reservation is entered to return the inventory amount to the salable quantity. The reservations effectively cancel each other out, not deducting the quantity from any sources. Other customers can actively purchase those product quantities through the associated stocks and sales channels.

Refunded orders

If a customer requests a refund, issue the credit memo for the partial or full product amounts. When you receive the returned products, enter a credit memo to provide the funds and update product amounts. When selecting the Return to Stock option, Commerce adds quantities back to the products and sources that shipped the orders and reservation compensations to update salable quantities for the associated stock.

Order types

Simple orders begin with a shopping cart, continue to payment, and end with a satisfied delivery. In these orders, Inventory Management easily processes reservations against the availability (or salable quantity) in the cart and checkout, and deducts from the on-hand inventory at shipment.

Process for a simple order

A more complicated order may have partial cancellations, partial shipments, and refunds. In these situations, reservations affect the available inventory to add quantities for cancellations and refunds and decrease quantities when ordered and shipped.

Process for a complicated order

Availability reservations and inventory changes occur based on the order status.

Status and reservations

The following tables detail order and credit memo status with reservation changes entered by Commerce to manage your inventory.

Order StatusDescriptionReservation for Salable Quantity
OpenNew and recently submitted, no processingReservation is saved when order is submitted for the stock.
CanceledCanceled in partial or full before paymentReservation compensation is entered to return partial or full quantity back to the stock salable quantity.
On HoldPayment and shipping not processed or invoicedReservation stays in place.
Suspected FraudNot processed due to fraudIf approved or in review, the reservation stays in place.
If declined, the reservation stays in place until the merchant decides to approve or cancel.
If canceled, the reservation compensation is entered to return full quantity back to the stock salable quantity.
PendingWaiting for paymentThe reservation stays in place.
ProcessingPayment processing, not receivedThe reservation stays in place.
Pending PaymentPayment not receivedThe reservation stays in place.
Payment ReviewPayment being reviewed for processing and completionThe reservation stays in place.
CompletePaid and shipped in fullThe reservation amount is deducted from the product quantity for the selected source when invoiced partially or in full. The reservation compensation is entered to update the total salable quantity.
ClosedRefunded or archivedIf archived, there is no change in quantities. If refunded in partial or full, the reservation compensation is entered and converted to add back product quantities per source and salable quantity per stock.
Credit Memo StatusDescriptionReservation for Salable Quantity
OpenThe refund is due, not completedThere is no change in reservations.
RefundedCompleted, funds returnedIf refunded in part or full, the reservation compensation is entered and converted to add back product quantities per source and salable quantity per stock.

Example complex order

Blake Sanders orders bikes and clothing for their family vacation and fun. They see some great sales on your Biking Adventures store with stock and sources spanning the United States, Canada, and Europe.

They buy two great park bikes for their small children, a BMX bike for their teenager, a nice mountain bike for themself, and a modern German cross-country bike for their spouse. The store had a sale on cute shirts, so they bought some for the whole family to match. See the list of vacation purchases below, the matching SKUs, and the reservations entered against the stock salable quantities.

Complex order

They show their family what they found, but makes some changes. Before payment completes, they cancel two of the 33-BikeFun SKUs (children did not like them). This is a partial cancellation due to payment pending, so no credit memo needed. To update, Commerce adds back to the salable quantity stock for Canada. The order is paid, and all products ship, arriving in time for vacation. Commerce updates the salable quantity and source quantities for the shipping warehouses for the shipped products.

But the shirt didn’t quite fit their spouse. Blake requests a refund and sends back his shirt. The creation of the credit memo adds one 54-BikeLife shirt back to the Canada stock and shipping warehouse.

  • Shipped products - With products purchased and shipped, Commerce updates the inventory. Reservation compensations convert to on-hand inventory quantity deductions from the shipped source. The available salable quantity updates for the stock.

  • Canceled products - By canceling stock, Commerce removes the reservation for that product. Reservation compensation is entered to the stock level to add back salable quantities for the partial cancellation of two shirts. This does not affect the inventory quantity at the source level.

  • Credit Memo/Refunded product - By returning stock, it must be added back to the quantities. When issuing the credit memo, you can select to return to stock. Commerce adds back inventory quantity to the shipped source for the product. Reservation compensations enter to clear any remaining reservations. The salable quantity recalculates against the updated quantity.

Order refund quantity updates

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