Shopify does not apply a discount to the entire order but allocates it across all of the items in the order. That works fine until you have to refund one of the items, then the customer loses that portion of the discount.
For example, if an entire order is $500 and the customer has a $50 coupon, Shopify allocates a certain discount to each item (eg $5.00 on each $50 item). If that $50 item then gets refunded, that $5.00 discount gets lost. It doesn't get applied to the other items in the order.
When I contacted Shopify Help about it, they suggested that we are now responsible for manually sending the customer a refund for the discount instead of them fixing this issue. This also messes things up tax-wise as the discount normally gets applied before tax so effectively we (and the customer) are paying more tax and are out of pocket.
Is anyone else having this problem? How do we get this escalated to the Development Teams?
That's a complicated problem. One solution you could use would be to manually assign a refund amount using store credits from a 3rd party app such as the one I built: https://apps.shopify.com/neat-credit . With this you'll have the original order in tact and everything keeps working as expected, just that the customer can use these funds in your store.
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