cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Everything you need to know about banking in QuickBooks Online - Discover more
F J Property
Level 2

Refund of goods

Hi, 

I am using QB self employed. I purchased some materials to the value of £1499.99 which I scanned the receipt as normal and marked as cost of goods for resale. The supplier credited them as could not supply and returned the money.

Can anyone advise the correct category that I should mark the refund as?

 

I researched it but the advice given online does not seem to relate to QB self employed as the options advised are not there. 

Grateful for the advice to put me on the correct track for the tax man.

Thanks.

Solved
Best answer February 19, 2024

Accepted Solutions
MarkAngeloG
QuickBooks Team

Refund of goods

Hi there, @F J Property.

 

Thank you for the clarification. Rest assured I'm here to assist you in choosing the proper category for a refund.

 

When categorizing a refund of goods in QBSE, it is generally recommended to choose the same category that was used for the original purchase. For example, if the original purchase was categorized as Cost of Goods for Resale, then the refund should also be categorized as Cost of Goods for Resale. This will ensure that your financial statements accurately reflect the impact of the transaction on your business.

 

If you are unsure which category to choose, you may want to consult with a bookkeeper or accountant who can provide guidance based on your specific business needs and circumstances. Additionally, it is important to keep accurate records of all transactions and categorizations in QBSE to ensure that your financial statements are accurate and up-to-date.

 

You can also learn more about the overview of QuickBooks Self-Employed.

 

If you have additional concerns about categorizing refunds, feel free to leave a reply below. I'm always here to assist you.

View solution in original post

4 REPLIES 4
Kevin_C
QuickBooks Team

Refund of goods

Thanks for laying out your concern, @F J Property. I'm here to help you understand how to properly categorise your refunds in your QuickBooks Self-Employed (QBSE) account.

 

Usually, when tracking a refund, you'll have to use the same category as when you generated the initial transaction. You can visit this article for a detailed process: Categorise transactions in QuickBooks Self-Employed.

 

Since you need additional assistance on what specific account to use for tracking these refunds, I recommend seeking help from your accountant to ensure that your books are accurate. They'll also be able to provide more expert ways of dealing with this situation.

 

Furthermore, the QBSE program will classify your transactions based on the specific category you've chosen upon categorisation. This is because each category is associated with specific SA103F box numbers, which help organise your income and expenses so you can see which aspects of your self-employed business. Here's an article for more details: Allowable and disallowable expenses explained.

 

This thread's still open if you have more questions about your transaction categories. If there's anything else I could do for you about your reports or any other things in Self-Employed, feel free to add the details to your reply. Have a good one.

F J Property
Level 2

Refund of goods

Hi Kevin, 

Thanks for the reply. Not sure if I made myself clear. the transaction is business but I need to choose a category, eg, business income, cost of goods for resale, other business expenses, etc, etc. 

I was just wondering in general what other people marked a refund of goods as when choosing a category?

 

I have ordered some other materials from another supplier for £8435.00 which again I will categorise as cost of goods for retail as they will then be charged to the client but its the refund that I just wanted some advise of which catagory in general people use for a refund when a supplier has refunded something. 

 

Thanks for the links. they did not generally answer the question.

MarkAngeloG
QuickBooks Team

Refund of goods

Hi there, @F J Property.

 

Thank you for the clarification. Rest assured I'm here to assist you in choosing the proper category for a refund.

 

When categorizing a refund of goods in QBSE, it is generally recommended to choose the same category that was used for the original purchase. For example, if the original purchase was categorized as Cost of Goods for Resale, then the refund should also be categorized as Cost of Goods for Resale. This will ensure that your financial statements accurately reflect the impact of the transaction on your business.

 

If you are unsure which category to choose, you may want to consult with a bookkeeper or accountant who can provide guidance based on your specific business needs and circumstances. Additionally, it is important to keep accurate records of all transactions and categorizations in QBSE to ensure that your financial statements are accurate and up-to-date.

 

You can also learn more about the overview of QuickBooks Self-Employed.

 

If you have additional concerns about categorizing refunds, feel free to leave a reply below. I'm always here to assist you.

F J Property
Level 2

Refund of goods

Hi Mark, 

Thanks for your response, greatly appreciated. Whilst I completely agree that the advice of my accountant is a wise option, sometimes best practice from those that use QB every day is extremely valuable. 

 

In the past I have done as you say and used the same category for a refund that I used for the outgoing however on this occasion I found myself doubting it. I fully appreciate the time from you both in your responses.

 

Many thanks.

Fraz

 

Need to get in touch?

Contact us