A customer is canceling an order that has a partial payment attached to it, and wants a refund.
Create a credit memo for the whole invoice and apply the credit to the invoice. Create a refund check for the customer.
Create a credit memo:
The invoice will be closed.
To refund the customer:
This will create a credit that will appear in the Customer Payment Window for the customer.
To clear the credit:
Note: Be sure the Available Credits and Amount due is set to 0.00 before clicking Save & Close.