Refunds are a common part of bookkeeping, whether you’re receiving a refund on a purchase or issuing a refund on a sale. In Bkper, refunds are recorded by inverting the original transaction, effectively reversing its financial impact.
Important: Deleting the original transaction is not recommended as it would remove valuable financial history and disrupt account balances. Instead, refunds should always be recorded using a reversal transaction.
The Principle
A refund is simply the opposite of the original transaction. Instead of recording new income or expense, you reverse the original entry to reflect the return of funds. This method ensures that:
The original transaction remains in your records.
The refund is accurately accounted for.
The account balances remain consistent and reconcilable.
Refunding a Sale (Seller’s Perspective)
When you sell something, you typically record:
01/01/2026 100 Service (green) >> Receivable (blue)
If you later issue a refund, you reverse the transaction:
01/02/2026 100 Receivable (blue) >> Service (green)
Why This Works
• This removes the revenue from your books.
• It clears the receivable (if it was unpaid) or adjusts the account balance accordingly.
• The transaction history remains intact, ensuring accurate reporting.
Refunding a Purchase (Buyer’s Perspective)
When you make a purchase, you record:
02/01/2026 200 Payable (yellow) >> Expense (red)
If you later receive a refund, you invert the transaction:
02/02/2026 200 Expense (red) >> Payable (yellow)
Why This Works
• This removes the expense from your books.
• It restores the payable amount, ensuring the correct balance.
• If only a partial refund is received, you can adjust the amount accordingly.
Why Use This Method (Instead of Deleting the Original Transaction)?
Keeps records accurate by maintaining a clear transaction history.
Ensures proper reconciliation with bank statements and financial reports.
Maintains the integrity of account balances, making it easier to track incoming and outstanding amounts.
Allows for adjustments, such as deducting any fees charged on the refund, ensuring the net amount is correctly reflected in your records.
By applying this simple principle, you can efficiently manage refunds in Bkper while keeping your financial statements accurate and transparent.
Final Note:
Refund transactions may not always happen on the same day as the original sale or purchase. This method ensures that both the initial transaction and its refund are properly accounted for, even when they occur in different accounting periods.