I'm having a similar problem. I just started using QBO two days ago, and this is driving me nuts!

-- I paid for an online video service with my business credit card, which is connected to QBO.

-- I decided I didn't need the service, and canceled it.

-- The vendor issued a refund to my business credit card.

-- I now have two transactions to review and confirm: the purchase and the refund.

How do I categorize them so they cancel each other out? Obviously, I can categorize the initial expense, but there's nothing in the Chart of Accounts for receiving a refund. I know I can't add it to Other Income. So where the heck does it go?!

I'm using the Simple Start plan, so I can't create a Vendor Credit. I've seen other answers say to get around that by creating a bank deposit. But I didn't receive a check, just the credit card refund. If I create a bank deposit, aren't I creating a third entry for this one transaction?

It shouldn't be this difficult just to record a simple refund. ARGH! I would be grateful for any help anyone can offer. Thanks in advance!