You're welcome and thank you for getting back to us and clarifying this concern, @jenuneekor. 

A refund receipt only records the return for your records. This won't show as an outstanding transaction for your customers. 

After creating an expense or check, you can choose not to match it to a downloaded bank transaction but rather process a receive payment. This will show under Outstanding Transactions where it reduces your bank's balance and offsets the customer's open credit, overpayment, or prepayment.

Let us know if you still have questions. Take care and have a wonderful day!