Refund - Chart of Account Type

Refund or Rewards?

If it is a Refund for an item purchase from Amazon that you returned, then you would use the same Account for the refund that was used for the original purchase.  So a purchase on the 20th in the Office Expense Acct would be cancelled out by the return on the 21st.

If it is a Cash Reward from your Credit Card, then you need to set up a new Income Account.  Go to your Chart of Accounts and create a New Account, the type would be Income - Other.  Name it whatever you want, but keep it simple like Credit Card Rewards.

Also, do not keep adding to this account as you earn the rewards, only add to the account when you actually collect the Cash/Reward.

THANK YOU! I have been doing it wrong, dang it!! I have been categorizing the refunds (amazon refunds for the most part) to "refund on reconciliation account". Is there an easy way to recategorize all the transactions I've categorized to "refund on reconciliation account" over to the right category?

Hello there, Grace Wang.

I'd be glad to help you re-categorize multiple transactions at once.

If the transactions were added from the bank feeds, you can undo them from the In Quickbooks tab then modify it.
 

Here's how:

1. On the left panel, click Banking.
2. Click the In QuickBooks tab.
3. Put a check mark on the transactions you want to undo.
4. Click the Undo button.
5. Go back to the For Review tab, and select the transactions you want to modify.
6. Click the Batch Actions drop down list.
7. Choose Modify Selected.
8. Change the Payee, Category, Class and Location.
9. Click Apply.

To re-categorize multiple expenses at the same time, you can follow these steps:

1. Click Expenses from the left navigation bar.
2. Click the boxes of the expenses you'd like to categorize and click the Batch Actions drop down list.
3. Select Categorize selected.
4. Choose the category you want, then Apply.

Once done, you can reconcile the account, so they always match your bank and credit card statements. Here's an article as your guide: Reconcile accounts.

I'm just around the community if you need help with the reconciliation process.