Are other users and store owners still having the issue where Shopify treats returned orders as ‘refunds’ and ‘refunds owed’? This is massively skewing data when the order is actually for an exchange and/or the refund isn’t actually due (e.g. customer may accept a gift card).
We use a 3rd party app for returns and when a return is made via the portal, Shopify automatically mark it as Refund owed and all the export reports also mark it the same. The funds never seem to be rebalanced though.
Topic summary
Main issue: Returns initiated via a third‑party returns app are being auto‑classified by Shopify as “Refund owed,” even when the resolution is an exchange or store credit/gift card (no cash refund due). This misclassification skews analytics and export reports.
Impact: Exported data shows refunds owed that aren’t actually payable, and the financials “never seem to be rebalanced,” suggesting a mismatch between operational outcomes and Shopify’s accounting status.
Context/Mechanism: When a return is created through the portal, Shopify flags the order as Refund owed by default. For exchanges or gift-card resolutions, this default status appears inaccurate.
Open questions: The poster asks whether other merchants are still experiencing this behavior and implies uncertainty about whether it’s a Shopify platform behavior or an integration issue with the third‑party app.
Status: No resolutions, workarounds, or official guidance shared yet; discussion remains open.