---
schema_version: "1"
id: 1572d4d21aa6457128f694248f2a908d5023a2968ddb5b11030f4df3ef52c4cd
title: Initiate Automated Refunds on Negative and Canceled Invoices
collection: admin
version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/billing_refund_orchestration.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_refund_orchestration.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: e89dcaf387337873971a6ceca3cec44018b10a69210dde9b8e29257d483912eb
description: During subscription changes such as a quantity reduction or cancellation, Billing generates a negative invoice which then gets converted to a credit memo. This action triggers the automated refund process, where Billing automatically initiates the refund to the original payment method.
products:
  - Revenue Cloud
release: "264"
---
# Initiate Automated Refunds on Negative and Canceled Invoices

During subscription changes such as a quantity reduction or cancellation, Billing generates a negative invoice which then gets converted to a credit memo. This action triggers the automated refund process, where Billing automatically initiates the refund to the original payment method.

### Required Editions

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small edition"><colgroup><col></colgroup><tbody><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: Lightning Experience</td></tr><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: <strong>Enterprise</strong>, <strong>Unlimited</strong>, and <strong>Developer</strong> Editions with <a href="https://help.salesforce.com/s/articleView?id=ind.revenue_licenses_areas_and_features.htm&amp;release=264.0.0&amp;type=5">the Revenue Cloud Billing license</a>. Contact your Salesforce account executive for more information.</td></tr></tbody></table>

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small permission">
      <colgroup>
        <col style="width:50%">
        <col style="width:50%">
      </colgroup>
      <thead class="slds-text-title_caps ">
        <tr class="">
          <th scope="colgroup" class="slds-cell-wrap" colspan="2" style="text-align:center;vertical-align:top;" id="d167181e71">User Permissions Needed</th>
        </tr>
      </thead>
      <tbody>
        <tr class="">
          <td data-label="User Permissions Needed" class="slds-cell-wrap" style="vertical-align:top;" headers="d167181e71 ">To initiate automated refunds on negative and canceled invoices:</td>

          <td class="slds-cell-wrap" style="vertical-align:top;" headers="d167181e71 ">
            <p>Billing Admin permission set</p>
            <p>OR</p>
            <p style="margin-bottom:0;">Credit Memo Operations User permission
              set</p>
          </td>

        </tr>
      </tbody>
    </table>

## How Automated Refund Process Works

When an amendment or cancellation is applied to a subscription associated with a fully settled invoice, Billing follows this sequence.

- Calculate the refund amount based on the original invoice and the amendment or cancellation invoice.
- Generate a credit memo to settle the original invoice.
- Initiate refund orchestration process to issue the refund to the original payment method.

![Note](https://sf-zdocs-cdn-prod.zoominsoftware.com/tdta-ind-revenue-264-0-0-production-enus/91ca99c6-d5c8-4986-b961-c6b7801e0d0d/images/icon_note.png)

Note Refunds are initiated only when the payments are associated with a payment gateway.

To initiate funds, in Setup, find and select **Billing Settings**, and then turn on these features.

- Issue Refunds and Settle Balances
- Apply Credits to Posted Invoices

Billing automatically applies the balances of credit memo to settle the balances of posted invoices based on the [credit application level](https://help.salesforce.com/s/articleView?id=ind.billing_setup_credit_memo_features_enable.htm&release=264.0.0&type=5 "Set up Billing to automatically create credit memos from negative invoice lines and apply them to settle outstanding invoice balances, and to configure whether credits apply to invoices or invoice lines.").

To trace the refund back to its original transaction, follow these steps.

- Open the credit memo generated by the amendment or cancellation.
- Review the Payment and Invoice Applications section to view the original invoice balance, the unapplied amount, and the refund application details.
- Confirm the refund amount and the payment method used for processing the refund.

![Example](https://sf-zdocs-cdn-prod.zoominsoftware.com/tdta-ind-revenue-264-0-0-production-enus/91ca99c6-d5c8-4986-b961-c6b7801e0d0d/images/icon_example.png)

Example

A customer account has a one-year subscription starting in March 2026, totaling $3,000. The original invoice is generated, activated, and fully settled via a payment method linked to a payment gateway.

However, when an amendment reduces the subscription quantity by five, Billing generates amendment billing schedules, and applies a credit of $825 to the posted invoices. Billing automatically triggers the automated refund process, and the $825 refund amount is settled against the same payment method used in the initial transaction.