---
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 invoice will automatically add the value of the invoice to the customer's ledger. The amount added to the ledger will automatically be used to pay for their next invoice.**

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

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

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

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

          

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

The difference between cancelling and refunding is that cancelling creates a credit that the 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 Nexudus.