How do I reverse a bill that was paid but had to pay it back?

Diane18 · ‎January 07, 2021

I manage a few companies. One is like a financial company and ended up being a mortgage holder for one of the other companies. I'll use Company A as the financial company and Company B as the company paying the mortgage. Same owner for both companies and he moves the money via EFT. For me to keep track of all the mortgage payments between the 2 companies, Company A bills Company B. I had to reverse a mortgage payment back to Company A two times due to expenses that came up with Company B and there wasn't enough money in the account to cover the bills. When Company A transferred the mortgage payments back to Company B, I used the "Make Deposit" feature. So now 2 month's of mortgage payments that were paid, now are not paid. How do I reverse the bills so that they show unpaid. Do I have to void them and re enter new bills or is there a better way of keeping track of this?

JamesM · ‎January 07, 2021

Hi Diane18,

Glad to hear from you again. It's vital you're able to record your transactions the correct way and I'm here to steer you towards the right direction. QuickBooks Desktop is the go-to program for managing your transactions as the program makes simple to do that.

Before voiding a bill, I'd suggest consulting with your accountant on what the next best steps to take are. Once you've decided to void the bill, I recommend taking note of the following:

Voiding changes the amount of the transaction to zero but keeps a record of the transaction in QuickBooks.
Deleting removes the transaction entirely in QuickBooks. It also causes the bill(s) paid to return to unpaid status.
Deleting the bill causes the Transaction Journal Detail report to display a bill payment without the corresponding bill. There will also be no bill associated with the payment cheque when you go to its transaction history.

Here's how to do void a bill in QuickBooks Desktop:

Open the transaction.
Select the Edit menu, then Void Bill/Void Bill Pmt-Cheque.

I also encourage you to review this helpful article with more info on how to: Void or delete a bill or bill payment cheque. In case you have other questions, don't hesitate to reach back to me in the comments below. I'm here to assist.

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Diane18 · ‎January 07, 2021

Sorry, I meant to say " I had to reverse a mortgage payment back to Company B two times due to expenses that came up with the Company............"

JamesM · ‎January 07, 2021

Hi Diane18,

Glad to hear from you again. It's vital you're able to record your transactions the correct way and I'm here to steer you towards the right direction. QuickBooks Desktop is the go-to program for managing your transactions as the program makes simple to do that.

Before voiding a bill, I'd suggest consulting with your accountant on what the next best steps to take are. Once you've decided to void the bill, I recommend taking note of the following:

Voiding changes the amount of the transaction to zero but keeps a record of the transaction in QuickBooks.
Deleting removes the transaction entirely in QuickBooks. It also causes the bill(s) paid to return to unpaid status.
Deleting the bill causes the Transaction Journal Detail report to display a bill payment without the corresponding bill. There will also be no bill associated with the payment cheque when you go to its transaction history.

Here's how to do void a bill in QuickBooks Desktop:

Open the transaction.
Select the Edit menu, then Void Bill/Void Bill Pmt-Cheque.

I also encourage you to review this helpful article with more info on how to: Void or delete a bill or bill payment cheque. In case you have other questions, don't hesitate to reach back to me in the comments below. I'm here to assist.

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How do I reverse a bill that was paid but had to pay it back?