I payed for an item and returned it in the same day. It was charged on my debit card and returned to my debit card in the same day. How do I record this? I have read too many different answers. I have QBO Essentials.
A refund to the debit card is a Deposit to that checking account. If you bought Office Supplies, the Deposit entry details is Office Supplies. This puts the Refund into the same place you entered the original expense.
Hello, I have an issue with the categorization of partial returns that I make. Say, if the original purchase receipt is $100 and they refund me $50. How do I categorize that return? Is the $100 an expense and the $50 income? If so then, do I have to "match" anything or do any additional steps to make sure the balance works out when reconciling?