Are refunds adjusted automatically?

Yes, they are. You can also refund only a part of an order, and it will be treated accordingly.

Partial refund example

Here is the situation before a partial refund. Somebody placed an order and your partner has got 46.07 USD ready to payout.

The customer wants to return 2 example products, so you make a refund in Shopify.

Now, if you check your partner's balance you will notice, that 46.07 USD changed into 7.36 USD.

Note that in the situation shown above, you had made a refund before commission payout. What would happen if you had to make a refund after the commission payout?

Holding days

Refunding after commission payout will result in a partner's balance dropping below zero. To see how to pay your partners please go here. For example, let's say that you already paid 7.36 USD for your partner. Now your partner's balance is empty.

Then a customer from earlier would like to buy a bigger poster, so he wants the next refund.

Now, the partner’s account balance is -3.93 USD, which means that their future earnings will count towards fixing that.

To omit situations like the one above you can set Holding days in your program settings. It will give you time for money management. Here you will find how to do it.