Returns from previous year purchases

Hi there, @rebelkick05.

Thanks for choosing QuickBooks Desktop (QBDT) as your accounting partner.

Yes, you can record the reimbursement from 2021 by creating credit to avoid messing up the previous year's data. Then, create a new invoice for the reimbursement to separate it from the old transaction.

Before doing so, I'd highly suggest reaching out to your accountant to ensure everything will be recorded correctly. This way, we can avoid mistakes since this involves past transactions. If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one near your area. 

For additional information in tracking your customer transactions in QBDT, feel free to visit our Accounts Receivable workflow page. 

You may also want to check our QuickBooks Help site to find articles and guides that can help you perform your QBDT tasks. 

Don't hesitate to post a reply below if you have any other concerns about recording returns in QBDT. I'm just a post away to help. Have a good one. 

@rebelkick05 

Just so I understand, this is for sales/returns to/from customers for items sold through Amazon?  Also, you're using invoices and not sales receipts?  Is there a reason for that?  Invoices are designed to be used when a customer will pay at a later time and a sales receipt is used when a customer pays at the time of the sale.  

Ideally, you would enter a sales receipt when the sale is made and a sales receipt when the return is received.  This keeps each transaction in its proper period.  As you suspect, going back to the original invoice and adjusting it is not the best way to do it because it can reduce income in a prior period if you're an accrual basis taxpayer.  Your employer can reduce their income to allow for sales returns and allowances but they should consult their CPA if they don't use that method already.