Thanks for getting back to us, @k-handler,

I can help you account for this credit in QuickBooks, but I will need a few information to make sure we're heading to the same direction. First, are you processing a return for a client? Also, are you giving them the entire amount they paid, which is the $100 billable expense and $50 markup?

I need your confirmation for this. Add the details in the comments below.

In the meantime, check out this workaround, where you can process the credit memo for $100 and add the $50 for mark up as a journal entry to clear it in the Profit and Loss report. See these sample screenshots of the series of process for reference:

When you apply the credit memo and journal entry to the invoice, choose both transactions in the Credits section. It looks like this:

Otherwise, if you are the one who receive a credit from a vendor, you can simply use a vendor credit for it. The following links will help you with the process:

• Enter a credit from a vendor
• Enter a refund from a vendor

I want to hear back from you about this, as I want to make sure this is resolved. Connect with me again by clicking the Reply button below. Have a good one!