diff --git a/app/services/customers_with_balance.rb b/app/services/customers_with_balance.rb
index f24c06d408..56a3c2d171 100644
--- a/app/services/customers_with_balance.rb
+++ b/app/services/customers_with_balance.rb
@@ -22,7 +22,7 @@ class CustomersWithBalance
   def outstanding_balance
     <<-SQL.strip_heredoc
        SUM(
-         CASE WHEN state = 'canceled' THEN payment_total
+         CASE WHEN state IN #{non_fulfilled_states_group.to_sql} THEN payment_total
               WHEN state IS NOT NULL THEN payment_total - total
          ELSE 0 END
        ) AS balance_value
@@ -43,8 +43,19 @@ class CustomersWithBalance
     Arel::Nodes::NotIn.new(Spree::Order.arel_table[:state], states_group)
   end
 
+  def non_fulfilled_states_group
+    states_group = non_fulfilled_states.map { |state| Arel::Nodes.build_quoted(state) }
+    Arel::Nodes::Grouping.new(states_group)
+  end
+
   # All the states an order can be in before completing the checkout
   def prior_to_completion_states
     %w(cart address delivery payment)
   end
+
+  # All the states of a complete order but that shouldn't count towards the balance. Those that the
+  # customer won't enjoy.
+  def non_fulfilled_states
+    %w(canceled returned)
+  end
 end
diff --git a/spec/services/customers_with_balance_spec.rb b/spec/services/customers_with_balance_spec.rb
index 5bac659d23..fefd1d9090 100644
--- a/spec/services/customers_with_balance_spec.rb
+++ b/spec/services/customers_with_balance_spec.rb
@@ -142,6 +142,39 @@ describe CustomersWithBalance do
       end
     end
 
+    context 'when an order is awaiting_return' do
+      let(:payment_total) { order_total }
+
+      before do
+        order = create(:order, customer: customer, total: order_total, payment_total: 0)
+        order.update_attribute(:state, 'checkout')
+        order = create(:order, customer: customer, total: order_total, payment_total: payment_total)
+        order.update_attribute(:state, 'awaiting_return')
+      end
+
+      it 'returns the customer balance' do
+        customer = customers_with_balance.query.first
+        expect(customer.balance_value).to eq(payment_total - total)
+      end
+    end
+
+    context 'when an order is returned' do
+      let(:payment_total) { order_total }
+      let(:non_returned_orders_total) { order_total }
+
+      before do
+        order = create(:order, customer: customer, total: order_total, payment_total: 0)
+        order.update_attribute(:state, 'checkout')
+        order = create(:order, customer: customer, total: order_total, payment_total: payment_total)
+        order.update_attribute(:state, 'returned')
+      end
+
+      it 'returns the customer balance' do
+        customer = customers_with_balance.query.first
+        expect(customer.balance_value).to eq(payment_total - non_returned_orders_total)
+      end
+    end
+
     context 'when there are no orders' do
       it 'returns the customer balance' do
         customer = customers_with_balance.query.first