Hi Brendon. I see you mentioned an overpayment, just to clarify, in QuickBooks Online, this happens when a bill payment exceeds the amount of the original bill it’s linked to. If you edited either the bill or the bill payment, try restoring them to their original amounts. This helps keep your records straight and makes handling the supplier refund process much smoother.
From what I understand, there are currently two downloaded bank transactions sitting in your bank feed waiting to be matched. The good news is that we’d only have to match the original Bill payment to the money out transaction.
The next step is accounting for the supplier refund that you have received, which is a straightforward two-step process. You’ll just need to create a Supplier Credit and then a Bank deposit. This lets QuickBooks know that the money you received in your bank account offsets the credit from your supplier.
To create a Supplier Credit, here’s how:
- Go to Suppliers.
- Select the supplier who sent the refund.
- Select the New transaction dropdown, then click Supplier credit.
- In Item details, fill out the items, quantity, and rates that were cancelled.
- Click Save and close.
Then create a Bank Deposit:
- Go to + New, then click Bank deposit.
- Select the correct Account and date.
- Under Add funds to this deposit, select the supplier in the Received From column.
- Set the Account to Creditors (or Accounts Payable).
- Type the refund amount, then click Save and close.
Once done, link the bank deposit record and supplier credit by going to +Create > Pay bills. You can then match the supplier refund bank transaction to the recorded bank deposit.
If you have more questions or need clarification, just let us know. We're here to help.
