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:

  1. Navigate to "Expenses & Other Revenue" from the main menu on the left.
  2. Click "Add Expense"
  3. Enter the payee, date, and amount of the refund
  4. Turn ON the "Refund" box
  5. Click "Save"

You should see the refunded expense appear as a negative value in your business' expense column.