Hi ktmbk2021-gmail-, thanks for your post - you can create a new account in your Chart of Accounts to record this. To do this, click the Cog > Chart of Accounts > New and select a liability account from the 'account type' drop-down. Here, you can enter an open balance for the refund amount. Once saved, allocate the refund in your bank for review tab by selecting the same liability account on the category field of the transaction. This will then reduce the liability amount owing in the account back to 0.00.
Please note the VAT control account should not be used as this is for internal use in QuickBooks only.
