# Refunds and corrections > Refund items on a paid invoice. Moodiri replaces it with a corrected invoice and keeps the money as client credit or records a refund. Source: https://docs.moodiri.com/invoices/refunds-and-corrections ## Why use it A client returns a chair after paying for it, or a product is discontinued after you billed it. Changing the paid invoice would rewrite a record your client already has. A correction keeps the original, shows exactly what was refunded, issues a replacement invoice for what remains, and tracks where the money went. ## When to use it - **A paid item is returned or cancelled.** Refund that line and keep the money as client credit for the next order. - **The client wants their money back.** Refund the line and record the refund you paid. - **Everything on the invoice is cancelled.** Refund every line; Moodiri creates a $0 replacement record. To cancel an invoice that hasn't been paid, use [Void](https://docs.moodiri.com/invoices/void-or-delete-an-invoice) instead. ## Before you start - Only the owner and admins can refund items. - The invoice must be **Paid** in full, in US dollars. - Open the invoice from **Invoices**. ## Steps ![Paid invoice LS-016-INV001 billed to Alex Rivera for a design fee and a site measure, total $13,800.00 with $0.00 due, and Refund items… under Actions.](https://docs.moodiri.com/shots/invoices--refunds-and-corrections-1600.webp) Same screen with numbered callouts: https://docs.moodiri.com/shots/invoices--refunds-and-corrections-annotated.webp Callout 1: Refund items 1. Open the paid invoice, here *LS-016-INV001*, and in **Actions** choose **Refund items…**. 2. Under **1. Choose items to refund**, tick the lines your client is returning or no longer needs, then choose **Review refund**. 3. Under **2. Confirm refund and credit**, check the preview and choose what happens to the money: **Keep as client credit** or **Refund to client**. 4. Give a **Reason**, then choose **Refund and issue credit**. A refund can't be undone, so check the preview first. ## Refund items The full steps, including the money choice and proof of refund, are in [Refund items: keep as client credit or refund to the client](https://docs.moodiri.com/invoices/refund-invoice-items). ## Replacement invoices and invoice history After a refund, the original invoice becomes **Corrected** and shows **Archived — this invoice was corrected and replaced**. It is a read-only record and should not be sent. A new replacement invoice holds the remaining items. Both invoices show **Invoice history**, listing every version with **Current** or **Replaced**. The replacement's **Timeline** shows **Created as replacement** with a link to the invoice it replaces, and the original shows **Corrected and replaced**. A replacement is never emailed to your client. It is paid from the credit the refund created. ## Settle a replacement from credit Normally the replacement invoice is paid from the client's credit as part of the refund. If that step didn't finish, the replacement shows **This invoice replaces a corrected invoice but has not been settled from the client's credit yet. Do not send it — settle it instead.** Choose **Settle from credit**. Until it is settled, the replacement can't be sent, edited or deleted. ## Limitation: replacements omit saved grouping labels If the original invoice grouped its products under room, vendor or category headings, the replacement lists the products without those headings. The amounts are unaffected. ## What happens next - The original invoice is marked **Corrected**, and the replacement becomes the current invoice. - With **Keep as client credit**, the refunded amount becomes client credit. See [Overpayments and client credit](https://docs.moodiri.com/invoices/overpayments-and-client-credit). - With **Refund to client**, the refund is recorded against that credit. See [Refunds paid back to clients](https://docs.moodiri.com/invoices/refund-money-to-a-client). - Your client sees the refund in their portal. See [Refunds and refund receipts](https://docs.moodiri.com/for-clients/invoices-and-paying#refunds-and-refund-receipts). ## Limits - Only fully paid invoices in US dollars can be refunded item by item. - Invoices paid with retainer funds, paid across more than one card payment, or paid by a mix of card and recorded payments can't be refunded item by item. - A product's sales tax is refunded with it. - After a correction, the original invoice's recorded payments are read-only. ## Troubleshooting - **Refunds are not enabled.** Item refunds are switched off, so **Refund items…** stays unavailable. - **A payment on this invoice is still finalizing. Try again once it has settled.** Wait for the card payment to settle. - **A refund, dispute, or other payment-provider change affecting this correction could not be reconciled automatically.** The related client credit is frozen until it has been reviewed by hand. ## Questions ### Why not edit the paid invoice? A paid invoice is a record your client already has. Moodiri keeps it as it was, marks it **Corrected**, and creates a replacement that shows what they now owe, so both versions stay on file. ### Does Refund to client send money back to the card? No. Moodiri records the refund you make. To refund a card payment, refund it in Stripe; Moodiri picks that up automatically. ### Can I refund an invoice that is only partly paid? No. Only a fully paid invoice can be refunded item by item.