For a special situation, how to categorize a check I need to write?

Question

A person wrote ME a check but it should have been written to another individual.  I recorded the payment as income and I now need to write a check to refund that payment.  to the correct person. How do write a check to avoid showing it as an expense or income.  This is similar to a "transfer"... I need to transfer the check amount from my account to another person that I do not maintain an account for.

NotACPA · Accepted Answer

Whatever category you used when you recorded/deposited that 1st check ... use the same category when you write the new/replacement check.The 2 will offset each other and thus result in $0 for Income/Expense.

volvogirl · Accepted Answer

You just write the check and enter it with the same income category that you put on the wrong deposit so it cancels out.  It is not a transfer in your Quicken account.  Or change the deposit to another category and put your payment to the same category.