In project how document an expense refund? ie. Homedepot $100 Home Depot refund $12.23 Project shows both as expenses so now expense tally is $112.23 instead of $87.77

Hello, info1250.

I'll share some steps on how you can record the refund from your expense. Instead of adding another expense for the $12.23, you'll want to delete the transaction and create vendor credit. The transaction is used to either record returns to vendors or refunds from vendors.

To delete the $12.23 expense, here's hoe:

1. Go to Projects on the left panel, and select the project.
2. Click the Transactions tab, and select the $12.23 expense.
3. In the Expense page, click More located at the bottom and select Delete.
4. Click Yes to confirm.

Once deleted, we can create the vendor credit by following these steps:

1. On the left panel, click + New > Vendor credit.
2. Select Home Depot from the Vendor drop-down list.
3. Choose the Payment date.
4. Select the Category or Item Details and enter the $12.23 in the Amount box.
5. Under Customer/Project column, select the project.
6. Click Save and close.

Next, deposit the refund so the amount is taken out from the Accounts Payable account and debit it back to the bank.

1. Go to + New > Bank deposit.
2. From the Account drop-down menu, select the bank account where you want to deposit the amount.
3. Under Add funds to this deposit, select Home Depot from the Received From column.
4. Choose Accounts Payable from the Account drop-down.
5. Enter the $12.23 in the Amount field.
6. Click Save and close.

Then, link the vendor credit and the deposit by creating a Pay bill:

1. Click + New > Pay Bills.
2. Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00
3. Click Save and close.

Finally, run the Project profitability report and you'll see the amount of $87.77 next to the Total Expenses. Please see this sample screenshot:

I'm adding this article for reference: Enter a refund from a vendor

You're always welcome to post here again if you have additional questions or other concerns. I'll be around to help.