# Refund expense **URL:** \ **Category:** Uncategorized\ **Created:** [June 25, 2020, 12:39pm UTC](https://forum.manager.io/t/refund-expense/28973 "2020-06-25T12:39:48Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 12:39pm UTC](https://forum.manager.io/t/refund-expense/28973/1 "2020-06-25T12:39:48Z")
Hi Im busy capturing the bank statement for a law firm and the company refunded some client back they haven’t done proper bookkeeping when they started so I started doing that how do I record refund I have checked some topics put it does not explain when a business pays back refund to a customer using bank account ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 12:45pm UTC](https://forum.manager.io/t/refund-expense/28973/2 "2020-06-25T12:45:02Z")
[Use credit notes for customer returns and refunds](https://www.manager.io/guides/7425) if this repayment is meant to affect the P & L account You could also make a payment straight to the customer’s account receivable from the bank account. This will not affect your P & L account ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 12:50pm UTC](https://forum.manager.io/t/refund-expense/28973/3 "2020-06-25T12:50:00Z")
the only information i have is the refund that the owner made from that bank statement I dont know what was the initial amount on the invoice ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 1:05pm UTC](https://forum.manager.io/t/refund-expense/28973/4 "2020-06-25T13:05:57Z")
Then the only question is was the refund included in the P & L account in the previous year or should it be included in the P & L account for this year? Was it in the customer’s balance or not at the end of the last year? ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 1:08pm UTC](https://forum.manager.io/t/refund-expense/28973/5 "2020-06-25T13:08:31Z")
yes it was not do I create a refund account ? ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 1:51pm UTC](https://forum.manager.io/t/refund-expense/28973/6 "2020-06-25T13:51:16Z")
Sorry - your answer is a bit ambiguous as my question was not as clear as it should have been. I’ll rephrase it Was the refund included as a reduction in income or an increase in expenses in last year’s P & L? ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 1:53pm UTC](https://forum.manager.io/t/refund-expense/28973/7 "2020-06-25T13:53:36Z")
as a deduction in the bank statement ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 1:55pm UTC](https://forum.manager.io/t/refund-expense/28973/8 "2020-06-25T13:55:56Z")
Yes, I understand that side of the transaction - but what account was the refund posted to - it was either posted to an income account as a negative amount, to an expense account as an expense or to an asset account such as Account Receivables/Customer to increase the customer’s balance ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 1:58pm UTC](https://forum.manager.io/t/refund-expense/28973/9 "2020-06-25T13:58:53Z")
I haven’t Posted it thats were im struggling now ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 2:13pm UTC](https://forum.manager.io/t/refund-expense/28973/10 "2020-06-25T14:13:42Z")
If the bank transaction is in the current year, then you can just post it to the customer account. That way it won’t affect this year’s P & L account ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [June 25, 2020, 2:16pm UTC](https://forum.manager.io/t/refund-expense/28973/11 "2020-06-25T14:16:16Z")
@Angela_Tjitombo, your choice is simple: - If the refund was a credit against an existing amount owed under a sales invoice, enter a credit note. See [Use credit notes for customer returns and refunds | Manager](https://www.manager.io/guides/7425). Then, because the business already paid the amount from its bank account, enter a payment, posted to _Accounts receivable_. This is described in the same Guide, at the very end. - If there was no sales invoice, skip the credit note and just enter the payment. But rather than posting the payment to _Accounts receivable_, post it to the income account where the sale was recorded. Since it sounds like you are reconstructing accounting records where no good ones existed, the issue of whether this affects this year’s or last year’s records does not really matter. Enter things on the dates they occurred. ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 2:16pm UTC](https://forum.manager.io/t/refund-expense/28973/12 "2020-06-25T14:16:43Z")
I’m confused do I create a customer account or how ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 2:19pm UTC](https://forum.manager.io/t/refund-expense/28973/13 "2020-06-25T14:19:22Z")
Just do what Tut said ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 2:24pm UTC](https://forum.manager.io/t/refund-expense/28973/14 "2020-06-25T14:24:51Z")
So I record the refund in the sales account as well accounts receivable wont it show that we are expecting funds ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 2:33pm UTC](https://forum.manager.io/t/refund-expense/28973/15 "2020-06-25T14:33:09Z")
you record it as a payment from the bank and post it to a sales account in the P & L it will not affect the accounts receivable Can I suggest you post it and then see what effect it has. If you want to post it differently, then you can delete the post and repost it ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 2:35pm UTC](https://forum.manager.io/t/refund-expense/28973/16 "2020-06-25T14:35:01Z")
so which means i will only post it to P&L account in the sales account ? ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 2:44pm UTC](https://forum.manager.io/t/refund-expense/28973/17 "2020-06-25T14:44:21Z")
Yes - it sounds as if the customer who got the refund does not have a customer account ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 2:46pm UTC](https://forum.manager.io/t/refund-expense/28973/18 "2020-06-25T14:46:22Z")
yes thats correct ---
**Author:** ![Angela\_Tjitombo](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/angela_tjitombo/32/19092_2.png) [@Angela\_Tjitombo](https://forum.manager.io/u/Angela_Tjitombo)\ **Post date:** [June 25, 2020, 2:48pm UTC](https://forum.manager.io/t/refund-expense/28973/19 "2020-06-25T14:48:09Z")
one more how will i treat leasing a photocopy machine from a supplier no invoices but payments have been done from the bank account ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [June 25, 2020, 2:49pm UTC](https://forum.manager.io/t/refund-expense/28973/20 "2020-06-25T14:49:17Z")
Just post the amounts to an expense account “Lease/rental equipment” Presumably there is some contract documentation about the lease and payment schedule - the business is hardly making payments without a signed contract 🙂 [Next page](https://forum.manager.io/t/refund-expense/28973.md?page=2)