During "Record Refund" operation, the system only records an offline refund to indicate that the invoice amount has been refunded externally.The Refund option, on the other hand, is to return the payment collected back to the customer’s account.
Now, if you want to refund the customer's card for this particular invoice where the record refund has been performed, here's what you need to do:
1. In the particular invoice, select the Details options under Credit notes issued.
2. In the Credit Note, you'll see the refund generated during Record Refund operation.
3. Click on Details and delete the offline transaction.
4. Once the transaction is deleted, you'll be taken back to the Credit Note where you can now use the "Refund" option on the right to return the amount back to the customer's card.