Let me share information with you about recording return products in QuickBooks Online (QBO).
You can either create a credit memo or refund receipt. By doing so, the item will be returned to stock. When you use a credit memo, you can apply it to the next invoice, and if the customer asks for a refund, use a refund receipt.
To create a credit memo:
Click the + New button.
Select the Credit memo.
Fill in the necessary details.
Click Save and close.
To create a refund receipt:
Click the + New button.
Select Refund receipt.
Fill in the necessary details.
Click Save and close.
I'm adding these articles to learn more about credit memos and refund receipts:
Feel free to click the Reply button below if you need further assistance recording your transactions in QuickBooks Online. I'll be around in the Community to help you.