This article also covers 

I scheduled a cancellation on a specific date. My customers haven’t received a refund yet for the unused term. Why is this happening?

The system canceled a subscription without creating a credit note. Why?

I scheduled a cancelation at the end of the term. My customers aren’t issued with a refund. Why?

Summary

When you try to cancel an active subscription at the ‘end of the term’ or ‘on a specific date’ the subscription moves to the Non-Renewing state and will not be billed further. You can configure the Subscription cancellation settings on how to issue prorated credits and handle refunds when a subscription gets canceled. 

Invoice status

Payment due: Adjustment credit note will be issued and adjusted against the current invoice

Paid: Prorated refundable credits will be generated, you could choose to refund this amount to the customer. 

Note: 

1. The credit note is generated only when the subscription is canceled at the scheduled time. 

2. You can override the subscription setup for cancelation on credits and refunds only when you manually use the Cancel immediately option from the admin console. 
   
   

Subscription details page: Cancel subscription > Cancel immediately

For canceling a subscription at the ‘end of the term’ or ‘on a specific date’ the subscription behaves according to the settings that you have configured on the Settings page.(Chargebee Dashboard > Settings > Configure Chargebee > Subscription cancelation)

Subscription details page: Cancel subscription > Cancel at the end of term

Subscription details page: Cancel subscription > Cancel on a specific date

Warning:
1.The changes made to the Subscription cancellation settings applies only to future subscriptions.
2.For an existing canceled subscription, you can either Refund the customer from the credit note or leave it as credits and the credits will get applied to the next invoice of the customer. 

Related articles and Documentation

How do I configure refunds during cancellations?

Why can't I refund a partial amount for certain transactions on the same day?