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A
akamali
October 11, 2021
Question

How to categorise a credit transaction as refund and not income?

  • October 11, 2021
  • 2 replies
  • 0 views
Hello Everyone, 

After pulling all bank statements to my account.  I see there is a credit transaction that happened (refund) for a debit transition that happened earlier in error.  How can I classify this as a refund? 

I was unable to categorize the transaction correctly as the refund option is not there.  

Thanks 

 

2 replies

J
JamesM4
October 11, 2021

Hello akamali, 

 

Knowing the right way to categorize your transactions is crucial as it helps maintain clean books. QuickBooks offers the necessary tools and resources required to help streamline your accounting. I'll be happy to point you in the right direction so you can get back to being the best at managing your work. 

 

Based on what you've described, I highly recommend reaching out to an accounting professional for expert advice on how to record the transactions. If you're not in contact with a professional, don't worry, you can search for one using this link here. In the meantime, check out the helpful resource below for more info on:

 

Record a customer refund in QuickBooks Online

 

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back.  

A
akamaliAuthor
October 12, 2021

I appreciate the reply but this is a simple question, I don't really need to reach an accountant to figure it out. 

 

Accounting -> Chart of Accounts -> New -> Account Type : Income, Detail Type: Discounts / Refund given and name it something meaningful. 

    C
    CGLog
    October 12, 2021

    If it's a refund for a previous transaction, you can always credit it back on the same account as the original transaction. 

    A
    allurech
    April 21, 2023

    Hi did you figure out how to categorise the refund , i am the same i have been refunded from an energy company who took payment twice , it is coming up as "sales" on my banking  but its a refund what category do i use? thanks

    A
    Alex M
    April 21, 2023

    Hi there allurech,

     

    It's vital that all your transactions are entered correctly for your books to be balanced. QuickBooks Online is a tool able to import transactions from your bank in order to save you time with data entry. I can provide some information about how to enter a refund from a supplier.

     

    If you receive a refund from a supplier, then you'd have to first enter it manually using the various methods in this article depending on the situation, then match it after it's been created manually.

     

    If you have any other questions, feel free to reach out here.

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