If you use the inventory item on the refund, then your qty on hand will increase, this puts the item back in stock

That works if the item is returned, and if the item is in resalable condition

If your state requires that returned items be sold as used items, or if […]

Resolution for 'count update issue: 'Will my inventory count update after issuing a refund receipt?' available: Yes.

The count update issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the count update issue yourself by looking for a resolution described in the article. If it is a complex count update issue or you are unable to solve the issue, you may contact us by clicking here or by using other count update support options.

For more information about resolving issues related to count update in Quickbooks/QBO or to get support for the issue 'Will my inventory count update after issuing a refund receipt?', click the link below: