I paid a supplier and the payment bounced back as it had wrong bank details. How do i fix this to the account will be owing again. And how do i show the money coming back
Thanks for posting in the Community! We can create a supplier credit and deposit to record the refund and then use the Pay Bills option to link the bank deposit to the supplier credit.
Step 1: Enter a supplier credit
This makes sure the credit hits the expense account you use for this supplier.
Step 2: Deposit the money you got from the refund
Step 3: Use Pay Bills to connect the bank deposit to the supplier credit
Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your supplier expenses accurate.
You can also check on this article for your reference: Handle supplier credits and refunds in QuickBooks Online.
Feel free to drop a comment below if you have any other questions. Have a great day!
Hello there, @LindaA. I appreciate your immediate response.
I'll help you determine if you'll have to put the supplier invoice back and pay it in QuickBooks Online (QBO), so you can keep your account and financial data accurate.
You don't have to enter your supplier invoice or bill back and then pay it since you've already entered and recorded them in your QBO account. After performing the steps provided by my colleague above, you're good to go since it specifically guides you on how you can appropriately record the supplier payment that bounced back.
You can also refer to this article for the complete guide: Handle supplier credits and refunds in QuickBooks Online.
Also, I'm including one of our Help pages to guide you in accomplishing your tasks in managing your expenses and supplier transactions using QBO: Expenses and suppliers help for QuickBooks Online. It includes articles about supplier credits and how you can manage your money out payments, to name a few.
Let me know if there's anything else you need or if you have other concerns about managing supplier payments and expense transactions in QBO. I'm always here to help. Take care, and I wish you continued success, @LindaA.
Thank you for your response. The reason why don't owe a supplier it's because we've used the Pay Bills option option to linked the supplier credit and bank deposit.
Just to check, are you paying your suppliers via batch payment option in QuickBooks Online? If yes, you can reverse the bill payment so you can create a new valid ABA file. Here's how:
For the refund, you can also allocate it to the same expense category on the original purchase if doesn't involve inventory. Reporting wise the refund will offset to the original money out.
Let me know if you require further assistance with supplier payments. I'll be here to help.
That can't be right.
Why would you enter a supplier credit and a deposit?
If you spent $5,000 on travel, then enter a supplier credit of $5,000 against travel, and a deposit of $5,000 against the supplier, you have zeroed your travel expense and you are showing that your supplier balance is zero.
In fact your expense (travel) needs to remain unchanged, but your supplier balance needs to go back to $5,000 with a reversal of the supplier payment.
Thanks for joining the thread.
If you've paid your supplier with ABA files and would like to reverse the payment made, you can follow these steps.
Doing this, the bill will be re-open and you'll be able to create a new ABA file to pay for your supplier.
Feel free to drop a comment below if you need further assistance. I'll be around to help.