An expense refund (or reimbursement) is a deposit that goes against an expense. It is not income. It often cancels out all or part of an expense.

Example of an expense refund:

Let's say you spent $100 on gas for a business trip. This is an expense, likely categorized as "Car and Truck." Now let's say that your client reimburses you for this $100. When you get that $100 check from your client and deposit into your bank account, it'll show up as a deposit transaction in LessAccounting. By default, we'll mark this deposit as "Regular Income" but it's not income.

How to mark a deposit as an expense refund:

In this case, change the Income Type to "Expense Refund". You will be prompted to select which expense category to mark that deposit against. Select "Car and Truck."

What does this look like on reports:

Your expense reports will now show these deposits as refunds against your total expenses. If you look at your expenses for "Car and Truck", you'll see that you spent $100 but also that you received an expense refund (or reimbursement) of $100. Your total spent on Car and Truck, in this case, amounts to $0.00 since you were paid back all of what you spent.