If you purchase books or materials for your business, and then later return those for a full (or partial) refund, you should record this transaction in the "Expenses and Other Revenue" section.

A refund is a special type of expense transaction because it reduces your business expenses (as though the original purchase was for a lesser amount). It should not be recorded as revenue.

Here's what to do:

  1. Navigate to "Expenses & Other Revenue" from the main menu on the left.
  2. Click the "+ Add" button and select "- Add Expense" from the drop-down.
  3. Enter the payee, date, and amount of the refund.
  4. Turn ON the "Refund" box.
  5. Click "Save".

You should see the refunded expense appear as a negative value in your business' expense column.