---
title: "Cancel vs Refund Invoices"
slug: "understanding-the-difference-between-cancelling-and-refunding-invoices"
updated: 2024-10-09T16:57:17Z
published: 2024-10-09T16:57:17Z
canonical: "help.nexudus.com/understanding-the-difference-between-cancelling-and-refunding-invoices"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.nexudus.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Cancel vs Refund Invoices

**Cancelling a paid {{variable.invoice}} will automatically add the value of the {{variable.invoice}} to the customer's ledger. The amount added to the ledger will automatically be used to pay for their next {{variable.invoice}}.**

*For example, if you cancel a $100 {{variable.invoice}}, the customer's ledger will be -$100. This negative ledger means that your {{variable.space}} owes $100 to the {{variable.customer}} and this amount will be deducted from their next {{variable.invoice}}.*

**Refunding an {{variable.invoice}} paid using one of our integrated payment gateways automatically sends back the amount paid by the {{variable.customer}} to their account via the same gateway.** 

*For example, if you refund a $450 {{variable.invoice}} that was paid using Paypal, the {{variable.customer}} will receive $450 via the same Paypal account they used to pay for the {{variable.invoice}}.* 

:::(Warning) (If you refund an {{variable.invoice}} paid using a manual payment method (check, cash, etc) in {{variable.Nexudus}}, you need to manually issue the refund as well.)

*For example, if a {{variable.customer}} paid their {{variable.invoice}} via a bank transfer, refunding the {{variable.invoice}} in {{variable.Nexudus}} won't return the funds to the customer's account until you manually process it outside of {{variable.Nexudus}}.*
:::

The difference between cancelling and refunding is that cancelling creates a credit that the {{variable.customer}} uses at a later date while refunding sends back the funds to the customer's bank account straight away.

Both options always generate a credit note to account for the transaction in {{variable.Nexudus}}.