How do I record a refund for a business related expense?
f you purchase books or materials for your business, and then later return those for a full (or partial) refund, you should record this transaction in your Expenses and Other Revenue section.
A refund is a special type of expense transaction because it reduces your business expenses (as though the original purchase was for a lesser amount). It should not be recorded as revenue.
Here's what to do:
- Navigate to "Expenses & Other Revenue" from the main menu on the left.
- Click "Add Expense"
- Enter the payee, date, and amount of the refund
- Turn ON the "Refund" box
- Click "Save"
You should see the refunded expense appear as a negative value in your business' expense column.