Expense Refunds

When a vendor Returns money you already paid — an overcharge credit, an insurance reimbursement, a returned deposit — an expense refund captures that inflow and reverses the original cost. Posting a refund increases your bank balance and reduces the net expense on your Profit & Loss, so your financials stay accurate without manual Journal Entries.

How to create an Expense Refund

Expense refunds are created directly from the original expense, not from the list page. This keeps the refund linked to its source.

1. Open the posted Expense you are being refunded for.
2. Click New Refund.
3. Select the Financial Institution the refund is being received into.
4. Set the Posting Date.
5. Add refund lines — select the GL Account and enter the Amount being refunded per line.
6. Add a Reference Number if the vendor provided one (e.g., a credit note number).
7. Post the refund.

Field reference

• Expense — the original expense this refund relates to; set automatically when you open the refund from the source expense.
• Financial Institution — the account the refund is deposited into; your bank balance is increased on posting.
• Amount (per line) — the amount being refunded per expense category; must match the credit the vendor or insurer is returning.

Document lifecycle

Tips

• You don't have to refund the full original amount. Partial refunds are fully supported — enter the exact amount being returned on each line, and the remaining expense cost stays on your P&L.
• Once posted, the refund reduces the net cost shown in those expense categories on your Profit & Loss. If a $500 travel expense was refunded $200, your books show a net $300 travel cost for the period.

Related: Expenses · Bank Transactions · Audit Trail · Account Priming