Occasionally you may receive a refund from a supplier against goods or services you have already paid for.
You should receive a credit note with the refund and this will include details of any VAT involved.
You should enter the refund as a Payment with a negative value. This is better than entering a receipt since this will require you to enter your supplier as a customer. It also means that all transactions with that supplier appear together when you use the relevant filter in Manage transactions.