How do I allocate these correctly ? My current set up is as follows.
I have a supplier set up, lets say Refunds - My Domain. When I refund I am entering a new "Money Paid Out" transaction "Paid To" the above supplier. This is then allocated to the "Refunds" account under "Expenses"
Is this the correct way to do it ?
Hi Adrian,
Your approach will correctly affect the profit calculation, but it is more common to treat the refund as the 'opposite' of the original sale. For example, say you recorded a sale as a Money Received transaction from the Sales Income account to the Cheque Account, with the Received From field set to 'John Smith'. You would then enter the refund as a Money Paid Out transaction from the Cheque Account to the Sales Income account, with the Paid To field set to 'John Smith'.
Cheers,
