How is a refund after settlement already paid handled (clawback next cycle)?

If a refund happens after settlement has already paid the vendor for that sale, the amount is clawed back / adjusted in the next settlement cycle. The refund posts as an adjustment to the vendor's ledger, so the next run nets it out rather than leaving the books wrong. This handles the timing reality that refunds can lag the settlement that paid out the original sale — the correction…

If a refund happens after settlement has already paid the vendor for that sale, the amount is clawed back / adjusted in the next settlement cycle. The refund posts as an adjustment to the vendor's ledger, so the next run nets it out rather than leaving the books wrong. This handles the timing reality that refunds can lag the settlement that paid out the original sale — the correction simply flows through the following cycle, keeping cumulative accounting accurate.