How to deall with refunds back to our bank account

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. 

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

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!

Hi Mel247, you can select the check-box to the left of the transactions in the transaction list and select batch actions > delete to remove these, we do take on board your comments regarding the limited capability of recording refunds in QBSE and we'll share this feedback with our product development team. :folded_hands:

Hi Georgia,

Thank you for your reply.

But it would appear yet again if you have entered transactions manually and select for example 3 of them. There is no facility to select Batch Transactions.

My guess is that you either have to have been connected to your bank account or to have imported them by csv file.

Also even if I could do batch transactions it does not solve the other part to my question that I gave an example to in my post earlier regarding the £100 and £25 gets refunded back to me.

In my opinion QBSE is flawed and causes way too many problems and has not been thought out properly, it's almost easier to use a spreadsheet!

I appreciate you for getting back on this thread, Mel247. I'm here to ensure this refund issue gets sorted out.

As mentioned, the option to track your returned purchases in QuickBooks Self-Employed is unavailable. This is because refund transactions are not included in the Schedule C category. The only workaround is recording the refund as a personal expense and excluding the transaction in the program.

Since you can't exclude the manually entered transactions, you can import them to the program. 

Also, I'd recommend reaching out to an accountant or tax adviser to ensure you're posting it to the right account depending on the type of business you have.

Additionally, I've added an article that'll help you learn more about how QuickBooks Self-Employed estimates your taxes. This ensures your estimated taxes are accurate: Three Tax Calculations to Help you at Tax Time.

I encourage contacting us again if you have other questions about recording refunds, Mel247. Doing so helps us provide the assistance you need.