QuickBooks Online (QBO) retains the invoice along with its payment to keep your books accurate, @Joanne38.
These two transactions show that your customer paid an invoice. Without them, you'll have a difference in amounts when reconciling your bank account.
Speaking of reconciliation, I suggest you keep these articles for future reference:
You can follow the steps in these articles to resolve any issues you might encounter during and after a reconciliation in QBO.
Feel free to post a reply if you have other questions about recording refunds in QBO. I'll get back to you as soon as I can. Have a nice day ahead!
