The refund reasons are stored in a code table in Administration called Credit Reason under the Credit Category. This solution walks through how to add a new entry to the refund reasons list when performing a refunding or editing the refund reason on a sales order. This also assists in how to edit a refund reason and delete or remove refund reason. 

How to add new refund reason:
  1. From Administration, select Code Tables.
  2. Select Credit from the Category drop down list.
  3. Click Credit Reason, click Add
  4. Enter the description (refund name) click Save
  5. This new entry will be available the next time you create a refund 
How to edit refund reason:
  1. From Administration, select Code Tables.
  2. Select Credit from the Category drop down list then select Credit Reason
  3. Click drop down next to reason and select Edit
  4. Edit name and click Save
How to delete or mark refund reason inactive:
  1. From Administration, select Code Tables.
  2. Select Credit from the Category drop down list then select Credit Reason
  3. Click drop down next to reason and select Delete
  4. Note: If code table entry is in use, you will not be able to delete. Instead, click Edit and mark as Inactive.
  5. Save
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