My approach is to use an asset account called Reimbursements. When I identify that I want to return a purchase, I change the category to Transfer : Reimbursements, and then when
the store credits my account I categorize that as a transfer out of the Reimbursements account. When the credit is received, I mark both the purchase and the credit as Reconciled in the
Reimbursements account.

This is a bit more effort, but it does have some advantages. You don't have negative expenses, or the appearance of an expense in one month and a negative expense in the next
month (if you bought and returned something in different months). Also, a quick examination of the reimbursements account makes it easy to see which credits I am expecting to receive
(especially in combination with reconciling transactions in the Reimbursements account). I also use this for things like rebates.

- Ravi

--------------------
- quote -


--

This posting is provided "AS IS" with no warranties, and confers no rights. Use of included script samples are subject to the terms specified at http://www.microsoft.com/info/cpyright.htm

Note: For the benefit of the community-at-large, all responses to this message are best directed to the newsgroup/thread from which they originated.

Many of us just reverse the original expense category. I.e., buy $300
Clothing in one transaction, credit ($50) Clothing in another transaction.
Money may ask if you want to save income using an expense category. Say yes.

"Rebekah Carlisle" <anonymous[at]discussions.microsoft.com> wrote in message
news:031201c3b39b$0304e0e0$a501280a[at]phx.gbl...
- quote -

How should I handle returns? For instance, let's say
that during November I purchased $300 in clothing from
Lazarus, using my debit card, but returned $50. The
store credited my checking account the $50 for the
return. I enter the transaction as a credit to the payee
(Lazarus). Does MS Money then think I've spent $250 on
clothes for the month, or $350? My bottom line is that I
want the expense categories to accurately reflect
expenses and it's not at all unusual for me to make
clothing returns as I'm the primary buyer for my family.

Thank you.