How Cancelled Orders Are Accounted For in Blue Onion

Cancelled orders are fully accounted for within Blue Onion, both from the perspective of the journal entries within the application as well as within the deferred revenue waterfall pages.

If Cancelled and Refunded:

When the order is first placed and then canceled, it will be added (credited) to the deferred revenue liability, and once the refund is initiated, the refund expense will be included in the journal entry. Please note that the refund expense line item can also contain refunds that were issued for returned items or customer service courtesy gestures.

Additionally, the net cash impact for the order will be accounted for in the cash receipts journal entry:

And finally, the order will be removed from the deferred revenue balance initially booked from the original orders journal entry as well as reducing the refund expense recorded.

If Cancelled and Not Refunded:

Generally, these are orders that were cancelled before payment was processed, and no refund is required. If instead of being refunded the customer was offered a gift card, this would be accounted for in the gift card lines on the journal entries.

If the customer’s order was simply cancelled and not refunded nor given a gift card, the deferred revenue for the order will appear in the Orders journal entry, and then reversed out under the Cancellations journal entry.