> For the complete documentation index, see [llms.txt](https://docs.wandreferrals.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandreferrals.com/referrals-sales-and-reversals/clawback.md).

# Clawbacks

## What it does

When an order is refunded, canceled, or charged back **after** its commission was already **paid**, the money is already with the affiliate. Wand Referrals never rewrites the paid award or automatically withdraws funds. Instead it records the shortfall as **clawback owed**, and gives you two ways to resolve it.

## How clawback is recorded

* On an adjustment to a **paid** commission, the reduced amount is appended as an immutable clawback obligation rather than editing the paid row.
* The system tracks each replay-safe obligation and the total unresolved amount per affiliate.

## Resolving clawback

You have two options per affiliate:

1. **Reclaim** — when the program enables clawback recovery, carry the owed amount forward against future commissions. The payout never becomes negative and Wand never withdraws affiliate funds.
2. **Waive** — an authorized user supplies a reason and forgives the owed amount as goodwill. The actor, reason, before/after balance, and timestamp are audited (`payout.clawback_waived`), and the operation is idempotent (waiving when nothing is owed is a safe no-op).

Once reconciled (reclaimed or waived), the obligation is marked resolved so it isn't double-counted. Existing programs that previously used automatic netting are explicitly grandfathered into recovery. New programs default recovery off; in that case the merchant absorbs the loss unless an authorized user resolves it manually.

## When to reclaim vs waive

* **Reclaim** when the affiliate has ongoing sales you can net against — the standard, margin-protecting choice.
* **Waive** for a valued affiliate, a small amount, or where reclaiming would harm the relationship.

## Related

* [How refunds, returns & chargebacks affect commissions](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/reversals/refunds-returns-chargebacks/README.md)
* [Hold period & keeping a commission](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/reversals/hold-period-and-keep-commission/README.md)
* [Payout methods & batches](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/payouts/payout-methods-and-batches/README.md)