Good day, How do i allocate a bank refund as a refund and back into the bank, it must not show as an income?

Hello, obediahms. 

I'll help you record a bank refund in QuickBooks Online. You'll need to create a bank deposit to track your refund. Then select the correct expense account where the amount will be deposited. This way, it won't show up as an income.  

Here's how to deposit the money you got from the refund: 

1. Click the + New button.
2. Choose Bank Deposit.
3. From the Account box, select the expense account used upon purchasing the equipment.
4. On the Add funds to this deposit section, choose the Account where the money comes from.
5. Enter the Amount.
6. Hit Save and close.

To learn more about this, see the Record and make bank deposits in QuickBooks Online article.  

Once everything is set, I suggest reconciling the bank account in QuickBooks Online to ensure everything is accurate: Reconcile and account in QuickBooks Online.

Don't hesitate to click the Reply button below if you have other transaction concerns. I'll get back to help and make sure you're taken care of. Have a great day!