Which step would a Business Practitioner take to process a refund on an order that has been invoiced?

In the Adobe Commerce order management workflow, a credit memo is the specific document used to process a refund for an order that has been invoiced. Creating a credit memo reverses the charge recorded by the invoice and allows the Business Practitioner to return funds to the customer. This can be for a full or partial refund and can be processed online through the payment gateway or recorded as an offline refund.

A. Cancel the order. An order can typically only be canceled before an invoice is generated and payment is captured. Canceling is not the correct procedure for refunding a completed financial transaction.
C. Create a return for the order. Creating a return (RMA) manages the logistics of a customer returning physical goods. While it often precedes a refund, it does not execute the financial transaction of returning money. ---

1. Adobe Commerce User Guide, "Credit Memos": "A credit memo is a document that shows the amount that is due the customer for a full or partial refund... You can print a credit memo for an order that has been invoiced." This document outlines the entire procedure, starting from an invoiced order.

Source: Adobe Experience League, Commerce User Guide, Sales, Credit Memos.

2. Adobe Commerce User Guide, "Order Workflow": The standard order workflow diagram and description illustrate that after an order is invoiced, the path to a refund is through the creation of a credit memo, which then sets the order status to Closed.

Source: Adobe Experience League, Commerce User Guide, Sales, Order Workflow.

3. Adobe Commerce User Guide, "Cancel an Order": This section explicitly states the limitations of canceling an order. "An order that has been invoiced and shipped cannot be canceled. Instead, you must create a credit memo to refund the transaction."

Source: Adobe Experience League, Commerce User Guide, Sales, Orders, Processing Orders, Step 6: Cancel an Order.