# Retroactive Refund

Retroactive refunds are used when the original order has already been finalised and reported (at the end of an accounting period). They allow you to issue a refund without modifying historical records.

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Retroactive refund is only available for **inactive orders**.
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#### Key Points:

* Creates a negative sale for the date the refund is issued
* Reduces sales, payment totals, and VAT liability for the day the refund is processed
* Original order remains unchanged