Good Afternoon,  sachinpatel25!

Thank you for the additional information. I have put together a quick video of how I would handle it. There is an important step in the recording of these transactions. You would need to find out what account your Item is reporting to. Is it Materials on Profit and Loss? If so, enter the refund to go to the same account and customer/project. You can use the “Deposit” transaction type in the checking account register to record the refund received. The video will have the steps I took to record transactions into the same account and under the same Customer/Project.

Would love to hear if this solution did the trick for you.

https://youtu.be/946xtGpBX-c

Regards,

Anna