How can I avoid a chargeback invoice to an income account

@Hashine  Well, I suppose you might get away with coding the Item you use on the invoice to your Utilities expense such that the Utility expense lowers upon each reimbursement, similar to a refund for another expense, but if they're reimbursing you, it is income.

In any case, whether you treat it as a reduction in the Utilities expense you are claiming or as an increase in reimbursed tenant utility income, it amounts to the same thing for your bottom line. A $100.00 reduced expense is the same thing as a $100.00 increased income for your profit.

Personally, I'd just leave it going to an appropriately named income account and continue recognizing extra utility expense each time you cover them. Legalities aside, it makes for cleaner bookkeeping.

There are two ways to record invoice chargeback so it won't fall into an income account, @Hashine. The steps are simple and you can easily follow them as I share them with you.

You can record chargebacks in QuickBooks Desktop (QBDT) as a business expense or refund. I'm going to show you how to do it as a business expense by writing a check which acts as a direct payment order to the bank, treated like cash. Here's how:

1. Navigate to the Banking menu.
2. Click on Write Checks.
   
3. Select your Bank Account from which the chargeback will be deducted.
4. Enter Payee and Amount. You can add a Memo to remind yourself of the reasons.
5. Use the Expenses or Items tab.
6. Once done, Save and Close.

Additional information is available in this article: Create, modify, and print checks in QuickBooks Desktop.

Moreover, I'll add this resource that you might scan for guidance on keeping track of your sales and expenses using predefined reports: Customize customer, job, and sales reports in QuickBooks Desktop.

Keep us updated in the Community if you have additional questions about recording invoice chargeback or other related concerns in QuickBooks Desktop. We're always around to help.

@Hashine 

I would keep this off your P&L.  The utility costs paid on behalf of the customer can properly be recorded to an other current asset (OCA) account just as if you made a loan to your tenant.  Then, the item on the invoice used for the reimbursement should be assigned to the same OCA account.  This method will increase the OCA account by the amount of the utility cost when incurred (accrual basis) or paid (cash basis) and reduce it when the customer is invoiced (accrual basis) or when you are reimbursed (cash basis).