Credit Memo still shows Open or Unapplied even if it was already Refunded

An instance when a Credit Memo remains on Open status or Unapplied even if the full amount has already been refunded can happen if the related Customer Refund transaction is associated to Unapproved Customer Payment account.

 

This can be verified by going into the Customer Refund record, then check the Account field.    

This happens when the refund contains credit card details in the Refund Method tab without actually processing a credit card refund with a merchant or has failed to check the CC Approved tick box.