I have the same questions but don't completely understand the answer you received.  I have quickbooks self-employed online. When I return something that I don't need and it was only a portion of the entire transaction, the credit goes to the same bank card that I used to purchase the item then i am just making a note in the comments section of that transaction that this was a refund for items returned. In another case, I returned the entire purchase so I just excluded both the purchase and the refund transaction but that didn't feel right to me. What have you decided to do lizuare?