Register a bill payment twice along with an Accounts Receivable

I'm here to guide you in recording the bill payment in QuickBooks Online (QBO), rigojr.

First, we'll need to create a bank deposit to record the refund:

1. Click the + New button on the upper left menu and select Bank Deposit.
2. In the Bank Deposit window, go to the Add funds to this deposit section.
3. Under the Receive From column, select the supplier.
4. Under the Account column, choose Creditors (Accounts payable) as the affected account.
5. Enter the amount.
6. Lastly, click Save and close.

Then, create a check or expense entry to link the transactions and offset the amount, as there are no open bills to associate the transactions with.

1. On the upper left panel, click the + New button and click Cheque or Expenditure.
2. Choose the supplier in the Payee field.
3. In the Category field, enter Creditors (Accounts payable), then include an Amount.
4. Click Save and close.

Once done, match the bank deposit you've created in the Bank Transactions section.

Moreover, I'll be sharing this reference that'll guide you in running reports for your suppliers for the payments they made: Run a report with supplier totals.

If you have follow-up questions, please don't hesitate to add a comment below. We'll get back to you as soon as possible.

Dear @LouiseG ,

Thanks so much for your help. I have a question regarding your approach. I still haven't received the refund. I should receive by next week. In your response, when you suggest making a bank deposit, is that to make an accounts receivable entry? Sorry, I'm a little lost and would appreciate a little more clarification.

Thanks in advance!

I appreciate your reply and adding clarifications to your concern, rigojr.

I'm here to add information about recording the payment in QuickBooks Online (QBO).

Yes, it would make an accounts receivable entry once you receive the refund. That's when you create a bank deposit and choose the Creditors (Accounts Payable) as the affected account.

Then, you can create a check or expense to match it from the second payment requested by your vendor.

Once the deposit is made for the refund, you can match it to the check.

In addition, I've also added these great resources that'll help you customise your reports based on the information you need, as well as how to save their current customization settings:

• Customise report in QuickBooks Online
• Memorise report in QuickBooks Online

You can always reply if you have any other questions about bills or any transactions in QBO. I'll get back here as soon as possible to help you again. Thanks for dropping by, and stay safe always.

Thanks so much @Carneil_C , for following up. I really appreciate it!

I have one last question -if you don't mind. In the "Bank Deposit" window, in the upper left hand, there's a dropdown box labeled "Account" which displays the bank accounts plus another account for clearing. Considering we are creating an "Accounts Receivable" for $20,000. What should I select in this dropdown box? Thanks so much for your continued support and follow up!

You can select any bank account in the Account field, @rigojr. Allow me to chime into this thread and explain further below.

In the Account dropdown arrow, choose your bank. In the Add funds to this deposit section, for the Account column, you can select Accounts Payable since this is an reimbursement from your vendor.

Additionally, you can also run reports so you'll know the different angles of your business such as the sales and spending. To learn more, I've added this article for more information: Run Report in QuickBooks Online.

Furthermore, don't hesitate to return to this platform if you encounter any challenges while performing bookkeeping tasks in the software. We're committed to addressing all inquiries and ensuring your QuickBooks experience is smooth and efficient.