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M
Mel247
January 13, 2022
Question

How to deall with refunds back to our bank account

  • January 13, 2022
  • 1 reply
  • 0 views

Hello,

 

UK Based using Quick Books Self Employed.

 

I have some questions about refunds back into our bank account for purchases that are expenses and were made from the same account.

 

Q1. Over a 3 month period we paid a montly fee of £9.99 business expense.... 6th April 4th May 4th June, It turns out that that we should not have paid these amounts they subsequently credited our account with 3 individual payments of £9.99 on 21 June... So the question is how do I deal with the refunds  received as they are not income they are refunds?

 

Q2. Purchased goods for the business to the value of £94.50 subsequently received a partial refund of £4.50 as one product was not suitable... Same question how do I deal with the refund  received as it is not income it is a refund on goods purchased

 

Q3. Purchased an item for the business for £59.00 which was refunded back to bank account the following week because it was not suitable.... Same question is how do I deal with the refund  received as it is not income it is a refund on good purchased

 

Thanks in advance for your help

Mel

 

1 reply

A
Ashleigh1
January 14, 2022

Hello Mel247, 

 

Welcome to the Community page, 

 

So in Quickbooks self -employed there is not a way to record refunds so you would just need to exclude them this link will help you with that here. 

M
Mel247Author
January 14, 2022

Hello,

 

I took a look at the link you suggested and understand the theory about excluding a transaction.

 

But if I exclude a partial or full refund, whilst that stops it showing as income the original transaction amounts will not be accurate from an expense perspective because I would be over claiming my expenses.

 

As a simple example: on an expense of £100 I get back a partial refund of £25. I exclude the £25 transaction so it does not show as earnings but I am still claiming £100 business expense, which is not correct.

 

If I manually change the initial expense to £75 whilst it would remove the over claiming problem of an expense, it would not match up with the bank account figure.... But it looks as though this is the only way to do it, unless you have another suggestion?

 

Thank you - Mel

M
Mel247Author
January 14, 2022

Update to my last post.

 

If like myself you enter transactions manually and do not connect with your bank account it looks like you cannot exclude a transaction as there is NO checkbox available when you expand the transaction!

 

So now we have another problem.

 

No disrespect but the idea of accounting software is to make your life easier and not more problematical!

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