Cash Refund

How to you make entries for expenses balance or cash refund

For a refund to a customer

If your business invoices customers and allows them to purchase on credit see this guide
Credit Notes: Use credit notes for customer returns and refunds

If your business does not allow customers to buy on credit (all cash sales)

  • enter a receipt but ensure you select a customer to ensure your total sales for the period are reduced by the refund

To refund an employee to business expenses see these guides
Expense Claims: Use expense claims | Set up expense claim payers

I mean Incase of expenses how do we treat it

You enter either a purchase invoice or a payment. Post the line items to appropriate expense accounts.