When Receiving The Refund

If a vendor refund relates to an expense you previously recorded, you can record the refund as an Income/Deposit transaction and assign it to the same Category and Fund used for the original vendor expense.

To record it:

• Go to Accounting > Accounts and select the account where the refund was received.
• Click Add Transaction.
• Select Income/Deposit as the transaction type.
• Select the vendor as the Payee.
• Select the same Category that was used for the original vendor expense.
• Select the same Accounting Fund.
• Enter the refunded amount as a positive amount.
• Add a note such as “Vendor refund” or “Refund of previous purchase”, then save.

For example, if you originally paid the vendor $500 from the Building Maintenance Category and they later refunded $200, record the $200 refund as an Income/Deposit using the same Building Maintenance Category and Fund. This keeps the refund associated with the original expense while also correctly recording the money coming back into your account.

Important: Refunds Imported From Your Bank

If the refund was imported from your bank, regardless of whether you received it or initiated it, use the imported transaction and recategorize it instead of manually adding another transaction, which would record the refund twice.
See Work With Transactions to learn more.