Thank you for sharing your feedback about the fulfillment process in the admin for canceled or refunded items. I’d also be happy to share some clarification on why these items stay as unfulfilled once they are canceled or refunded.
To ensure accurate “book-keeping”, the actions you take in the admin for certain orders could be limited based on previous interactions with that order. A canceled order means that the order no longer exists, the money has been refunded to customer or never received at all, and the items will not be leaving your store inventory. Since the order is canceled, there is technically no items that should be marked as fulfilled as there is no order to fulfill them through any longer.
For refunded items, the same thing goes. A fulfilled item is where the item has been removed from your inventory, packaged and delivered/shipped to the customer. If that has not happened, then marking the items as fulfilled would be incorrect and create false tracking. The system also sends automated messages when an order or item is marked as fulfilled, telling the customer it has been shipped out to them and they can expect it soon.
I can understand that esthetically it looks nice to have a list of orders marked as fulfilled in your store admin as an unfulfilled order can look like something may have been missed. In actuality though this is the correct status for the order unless you are still planning on sending the product out even if it was refunded/canceled.
If I misunderstood what you were referring to, please don’t hesitate to let me know.
Thank you!
-Shay