How to record a reimbursement
To record a reimbursement for an overpayment that was not a payroll over-payment you must use the same accounts which were used in the original transaction. For example, you owed your vendor $80 but wrote a check for $100, and the vendor has now sent a refund check.
The original transactions would have credited cash $100 and debited another account (usually an expense account) $100.
To reverse this transaction, create a deposit for the reimbursement amount which debits cash $20 and credits the original account that was used in the check for the amount of the reimbursement $20.
Check credits cash -100.00
Check debits exp 100.00
Deposit affects cash 20.00
Deposit affects exp -20.00
When the money is reimbursed, the amount reduces expenses.