How to record a supplier payment that was returned due to incorrect bank details and subsequently went through after processing second time? The deduction and refund transactions appeared in banking as our account is connected to online banking.
Let me help you handle the returned payment in QuickBooks Online.
For returned transactions due to incorrect bank details, I recommend you void the payment and re-issue another one. This way, the data we enter into the system will mirror out to what happened in the actual situation.
To void a payment in Online Bill Pay:
Go to Transactions, then Expenses.
Select Pay Bills Online.
Select the Payments tab.
Find the payment that you want, then select Track Status.
Select the void request type:
Remit funds back to my bank account
Reissue a new payment to the vendor
Enter your void request reason.
Select Submit Request.
If it's an ordinary transaction you enter in QuickBooks, here's how:
Go to the Sales or Expense menu.
Find and open the transaction.
Review the transaction. Make sure you need to void or delete it.
If you want to include the void or delete date, add a note to the Memo or Message section.
Select More in the footer. Then select Void or Delete.
Select Yes to confirm.
Once done, you can exclude the refund that appeared in the banking section of your account. It's unnecessary to add it in QuickBooks since we already voided the previous payment.
Please follow these steps:
On the left panel, click Banking.
Select the account.
Check the box next to the refund.
Press the Batch action drop-down menu, and then select Excludeselected.
As for the deduction showing from the banking, I suggest matching it with the re-issued payment.
Additionally, I recommend the following resources, which contains information about matching transactions, as well as voiding bill payments: