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in this video youll learn how to categorize refunds or returns so categorizing refunds and returns is actually a pretty easy process if you are refunded for an expense the categorization goes back into the original category used so lets pretend like this transaction right here is a refund now lets say that this transaction was originally I spent $65 on Amazon and office supplies then I returned the office supplies and I got the credit back all you do is you click here you open up the transaction youre going to put in the payee so well put in Amazon and then youre just going to categorize it as the original category used which in our case would be office supplies then were going to go to add and what that does is it offsets the money that you originally spent on the item because you got a refund