Thanks for your help ahead!
We had a delivery issue with a customer, so we ended up giving a full refund to the customer by giving up on a dispute.
After few days later, I could see the transaction history including new 'reversal' transaction that says the originally received payment is canceled, so the payment is returned to the buyer.
We assume this means we successfully made a full refund for the customer.
However, the 'paid' status on the customer's order page on Shopify hasn't changed to 'refunded' status.
Why is it?, and does this eventually mean the refund process didn't completely go through?
Or is it just because Shopify order page doesn't reflect a refund that was successfully made on Paypal?
Please assist us with the issue, and let us know what is accurately happening on this order!
Hyde here from Shopify.
You've actually answered that yourself within the question! Shopify's order page doesn't reflect a refund that was made external to the Shopify system on Paypal, because the system has no way of knowing that the refund was made.
The only way to log this within your store admin is to follow our refund process. As you have refunded within the gateway, in this case, it will no longer be possible to refund it in Shopify, the only option is to cancel the order. This means your reports will always be "off" as you will always have an amount that you are showing to have received even though you refunded it.
I hope that helps clarify matters, let me know if you have any other questions!
All the best, Hyde.