how to categorize a business purchase, that I returned?

pdxmaven · September 2020

If I buy something for my business, say a book or computer software. And then I return the book, how do I categorize that? I'd like to be able to how it reference the original purchase. So, for example, I bought a book and then the book was returned, for the same amount, or a partial refund. But it seems that Quicken considers this sort of thing as "income", rather than "zero-ing out" (as it were) the original purchase. And then when I set up an income category, for tax purposes, it has to reference a particular line item on my Schedule C, and these returns (because they are for various different things) potentially relate to many different lines of my Schedule C
thanks in advance for input

volvogirl · September 2020

Aren't you just entering the refund back to the same expense category you made the purchase?

BK · September 2020

I would use the same expense category for both transactions:

I purchase a shirt for $20 on my CC, so the category is 'shopping: Clothing'. I then return the shirt and receive a $20 refund on my CC. I categorize it same thing: 'shopping: Clothing'.

That way they zero out.

volvogirl · September 2020

Aren't you just entering the refund back to the same expense category you made the purchase?

BK · September 2020

I would use the same expense category for both transactions:

I purchase a shirt for $20 on my CC, so the category is 'shopping: Clothing'. I then return the shirt and receive a $20 refund on my CC. I categorize it same thing: 'shopping: Clothing'.

That way they zero out.

pdxmaven · September 2020

Thanks to both of you. It worked fine. somehow I had gotten it stuck in my head that because the refund was coming in as a credit to my account, I had to deal with it somehow in the "business income" section

how to categorize a business purchase, that I returned?

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