Hello there, @Breeeze. I'd be happy to share some details on recording vendor refunds in QuickBooks Desktop (QBDT).

It will affect the expenses for the current fiscal year. However, you can zero it out.

You can deposit the returned amount to the account that was used upon creating the check. This way, the expense will be zeroed out.

When creating the deposit, you may follow the date of when the check was generated. Ensure to select the correct expense account to where the funds will be deposited to. It will zero out the expenses posted.

If you want to follow your bank statement, you may use the date when the amount was returned to your account upon depositing the funds. It can make your reconciliation easier.

I'd also recommend reaching out to an accounting professional to assess what tax basis you have and to ensure that the data entered on the affected accounts are correct to avoid tax issues in the future.

I've got an article to know more info about the scenario-based steps you can follow when entering a vendor refund: Record a vendor refund in QuickBooks Desktop.

Please don't hesitate to reach back out if you have other questions or any updates with your accountant about this topic. I'm all ears to any response. Take care!