How to adjust refund behavior in Calculation Logic settings

Lifetimely gives you control over how refunds are handled in your profit calculations. You can access these options in Settings > Calculation logic.

These settings affect how product costs and refund dates are treated in your reports.

1. Reset product costs to zero for all refunded orders

By default, product costs are only reset to zero for refunded orders that have been restocked.

If you enable this option, all refunded orders will have their product costs zeroed out, regardless of restock status. This can give a clearer picture of lost margin due to refunds, especially if you don’t restock returned items.

2. Assign refunds to the original order date instead of the processing date

By default, refunds are shown on the date they’re processed, which means they appear in your reports based on the day the refund was issued.

If you enable this option, refunds will instead be assigned to the original order date, so your profitability reporting reflects the transaction timeline more accurately.