cancel
Showing results for 
Search instead for 
Did you mean: 
vmdnetworks
Level 1

Refunds

I was charged for a monthly subscription which I did not authorize. I was issued a refund. How do I categorize the charge and the refund so that it does not reflect in my profit and loss report?

Solved
Best answer May 29, 2021

Best Answers
MichelleBh
QuickBooks Team

Refunds

I understand that every penny counts when running a business, @vmdnetworks.

 

Good to hear that the refund was already issued. I'm here to ensure that you're able to categorize the refund amount in your account seamlessly. 

 

The Profit and Loss (P&L) report summarizes your income and expenses for the year, so you can tell whether you're operating at a profit or loss. It also indicates how the revenues are transformed into net income.

 

You can categorize your monthly subscription refund in QuickBooks Online by creating a new Chart of Accounts. Make sure that your Account Type is not Income or Expense. So, the amount will not reflect in your P&L report. 

 

Here's how: 

 

  1. Go to the Accounting tab, then choose Chart of Accounts
  2. Click the New button.
  3. From the Account Type and Detail Type drop-down, choose the appropriate account. 
  4. Type a unique name in the field. 
  5. Click Save and close

 

For more details, check out this article: Add an account to your chart of accounts.

 

After that, you can now categorize the refund transaction in the Banking tab. Let me guide you how: 

 

  1. Choose the Banking tab on the left side and click the For Review button.
  2. Locate and click the refund amount. 
  3. Select Categorize and pick the account you've previously created in the Category drop-down. 
  4. Click Add

 

You may also visit this link for more information: Categorize and match online bank transactions.

 

Moreover, for you to be guided correctly in choosing the accounts to use, I'd recommend reaching out to your accountant. This way, your books will accurate and precise. 

 

Once everything is set, you can review the data by running the register on the Chart of Accounts page. 

 

 

Additionally, feel easy to examine our articles about how to add account numbers, hide accounts, and handle monthly subscriptions. 

 

 

If you need more help with categorizing your entries, please don't hesitate to reply to this thread. I'll be happy to assist you further. Take care. 

View solution in original post

1 Comment 1
MichelleBh
QuickBooks Team

Refunds

I understand that every penny counts when running a business, @vmdnetworks.

 

Good to hear that the refund was already issued. I'm here to ensure that you're able to categorize the refund amount in your account seamlessly. 

 

The Profit and Loss (P&L) report summarizes your income and expenses for the year, so you can tell whether you're operating at a profit or loss. It also indicates how the revenues are transformed into net income.

 

You can categorize your monthly subscription refund in QuickBooks Online by creating a new Chart of Accounts. Make sure that your Account Type is not Income or Expense. So, the amount will not reflect in your P&L report. 

 

Here's how: 

 

  1. Go to the Accounting tab, then choose Chart of Accounts
  2. Click the New button.
  3. From the Account Type and Detail Type drop-down, choose the appropriate account. 
  4. Type a unique name in the field. 
  5. Click Save and close

 

For more details, check out this article: Add an account to your chart of accounts.

 

After that, you can now categorize the refund transaction in the Banking tab. Let me guide you how: 

 

  1. Choose the Banking tab on the left side and click the For Review button.
  2. Locate and click the refund amount. 
  3. Select Categorize and pick the account you've previously created in the Category drop-down. 
  4. Click Add

 

You may also visit this link for more information: Categorize and match online bank transactions.

 

Moreover, for you to be guided correctly in choosing the accounts to use, I'd recommend reaching out to your accountant. This way, your books will accurate and precise. 

 

Once everything is set, you can review the data by running the register on the Chart of Accounts page. 

 

 

Additionally, feel easy to examine our articles about how to add account numbers, hide accounts, and handle monthly subscriptions. 

 

 

If you need more help with categorizing your entries, please don't hesitate to reply to this thread. I'll be happy to assist you further. Take care. 

View solution in original post

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us