Returns & Refunds: How do you handle documenting in your records?

[lakeland_music]

I am wondering how other eBay sellers handle documenting their returns and refunds in their sales records.
I use excel and keep track of every metric from the sale, as well as a physical record printed off ebay records for everything as a backup.   

When documenting returns, cancelations and refunds, do you zero out any of the original sale, for example, cost basis, fees, sales tax, net, net profits, etc?   Do you keep a separate column showing the refund amount, and is it the total refund amount?  Or the amount you refunded less fees and sales tax?

I'll be getting my first 1099K this year, and I want to have a system in place to handle this effectively regardless of how I file.  Any information is greatly appreciated.

[rfmtm]

Leave all the original information there, just enter the refund amount as a deduction against it.

The ebay transaction report shows any refunds as separate line items, which you can sort and subtotal for the deduction against your 1099 gross.  This report also has any fees, charges, etc., and any reversals to subtotal as well.

[lakeland_music]

That's exactly what I needed to know, thank you.  
So I'll just keep a copy of the refund with the sales order and create a separate line for the refund amount.
You don't zero out your cost of the item though?  When I'm getting an item back it goes back into my inventory, so my cost of goods total shouldn't include items I've refunded right?