Inventory Tracking for COD/Pending/Unfulfilled Orders

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Tourist
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Hi

When someone orders from my site, the inventory gets automatically deducted especially when they pay immediatley. My question is, when its a COD pending order that is yet to be fulfilled (eg they may be coming to store to pickup the next day and pay cash or EFTPOS).... does that mean Shopify automatically deducts it from inventory? So if they don't turn up and I cancel order it gets added back to Shopify inventory?

Many thanks

Natasha

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