If a refund attempt on an invoice errors out no matter what amount you enter, the invoice was likely not fully paid in cash. Part of it was covered by a credit note balance that Lago automati

If a refund attempt on an invoice errors out no matter what amount you enter, the invoice was likely not fully paid in cash. Part of it was covered by a credit note balance that Lago automatically applied, and an applied credit note balance cannot be refunded to a payment method. Only the portion collected through the payment provider is refundable as cash.

Where the credit portion goes

Per the documentation, prepaid credits and credit notes applied to an invoice cannot be refunded and can only be credited back to the customer's account balance. So when you credit the invoice, the cash portion goes back to the payment method and the applied-credit portion returns to an available credit note balance that Lago deducts from a future invoice. It never passes through the payment provider, so it cannot become cash through Lago. If a real customer needs it back as cash, handle that manually in the payment provider. Note this is a credit note balance, distinct from a prepaid-credits wallet.

Clearing a residual credit note balance

To clean up, for example zeroing out a test customer, void the underlying credit note. This clears the balance without moving money. A residual balance can be the sum of more than one credit note, so void each one to fully clear it.

This article reflects guidance drawn from customer case resolutions. It is not officially supported documentation and may not apply to all situations.