How to Record Expenses Refund

how to Record Expenses Refund

Please provide more information on the transaction you are trying to enter as the words you used can apply to several situations.
Who is the manager business giving money to, a customer, employees, business owner or supplier?
Is it a refund of a prior payment by that party and if was an invoice or cash sale used?

The guide discusses expense claim payment which may or may not be relevant depending on what you are trying to do

Or are you receiving money as a refund on something you purchased?

Yes the refund was on purchase where someone signs for money and returns with a balance

So was the “someone” a

  • Customer
  • Supplier
  • Employee
  • Owner

The reason I ask is the exact procedure is different depending on your businesses relationship with this other “someone”.
As I stated before, reading this guide may help but it depends on what the business relationship is
Expense Claims: Use expense claims | Set up expense claim payers

By the way is this a different question to your earlier one

@Kweyo, let us assume you purchased paper for the office, but discovered it was the wrong size. So someone who works for the business returned it to the office supply store and received cash. Also assume that when it was purchased, it was fully paid. That is, the purchase was either recorded directly with a payment transaction or a purchase invoice was entered and later paid off. The purchase was posted to an expense account named Office supplies.

To record the refund, enter a receipt. Select a cash account (since the person who returned the paper came back with money). Post the receipt to the same Office supplies account. The cash account balance will increase. The Office supplies balance will decrease.

That is the simplest situation. Things get more complicated if there is an unpaid purchase invoice outstanding, the paper was purchased via an expense claim that has yet to be settled, or the paper was purchased for inventory (to sell to customers). For those situations, you need to furnish more information about the transactions.

Thanks so much
it worked very well for me

I suggest in this case @Kweyo also select a supplier on the receipt as he is reversing a purchase and not becoming a commercial supplier of office paper. Doing so will mean his reported purchases are decreased not sales increased for that period.