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Level 1

ACH Vendor Withdrawal/Refund Split Between Months/Years

We pay a vendor reoccurring monthly payments via ACH. In December we received a one time bill for next year's deposit and paid it by check. The vendor cashed the check but withdrew the same amount via ACH and later refunded it. My concern is the ACH withdrawal was in 2019 and the refund is in 2020. My reconciliation period for that banking account closes on 12/31/19. Any ideas on how to handle these ACH banking transactions so my yearly expense/income is correct? 

 

Bill/Check Payment Matched:

  • 12/1/19 -  Vendor Bill Entered
  • 12/19/19- Bill Payment (Check) - Matched to 12/26/19 Bank Draft

Overpayment/Refund not Matched:

  • 12/26/19 - ACH Debit from Bank Account
  • 1/2/2020 - Bank Account Received Returned Funds via ACH
Solved
Best answer 01-03-2020

Best Answers
Highlighted
QuickBooks Team

ACH Vendor Withdrawal/Refund Split Between Months/Years

Thanks for coming back, @BJP2. It's my pleasure helping you today. 

 

I completely understand how you're concern about handling your ACH overpayment from last year and got a refund this month from a vendor. 

 

First off, let's enter a vendor credit to make sure it will hit the expense account you use for this vendor. Then, let's deposit the money you got from a refund. Here's how: 

 

  1. Click the + New tab from the left menu. 
  2. Choose Vendor Credit.
  3. In the Vendor drop-down menu, select a vendor.
  4. Enter the Category details or Item details as to how you record purchases with this vendor. 
  5. Click Save and close.

 

Once done, follow these steps below to deposit the refund:

 

  1. Click the + New tab from the left menu. 
  2. Choose the Bank Deposit.
  3. In the Account drop-down menu, pick the account where you got the refund.
  4. In the Add funds to this deposit section, fill out the following fields: 
  • Received from: Choose the vendor who gave you a refund.
  • Account: Select Accounts Payable. Pick the A/P account to link the refund to the vendor credit.
  • Payment method: Enter ACH. 
  • Amount: Enter the amount of your refund.

         5. Click Save and close.

 

To keep your vendor expenses accurate, use Pay Bills to connect the bank deposit to the vendor credit. Here's how: 

 

  1. Go to the + New tab from the left menu.
  2. Choose Pay Bills.
  3. Select the bank deposit you've just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
  4. Select Save and close.

 

Concerning to your reconciliation, you can remove the filter from the reconciliation window so you can choose which period you want the transaction to post. I'd suggest consulting with your accountant to make sure your books are correct. 

 

For future reference, read through this article: How do I view, print, or export a reconciliation report?. This is useful for you and your accountant if you have trouble reconciling for the following month. 

 

Feel free to ask more questions here in the Community, @BJP2. We're always around to help. Have a great day ahead.

View solution in original post

3 Comments
Highlighted
QuickBooks Team

ACH Vendor Withdrawal/Refund Split Between Months/Years

Hello there, @BJP2.

 

I'd like to help share some information about the standard fee for ACH transfer in QuickBooks Online.

 

If you're using the Next-Day ACH transfer, a 1% (not to exceed $10) fee applies to each transaction you select for next-day ACH deposit. To get more insights about QuickBooks Payments fees, please read through these links:

Let me know if you need more assistance with this. I'll be around.

Highlighted
Level 1

ACH Vendor Withdrawal/Refund Split Between Months/Years

Hello GraceC,  thanks for your response but it is not relevant to my post. 

Highlighted
QuickBooks Team

ACH Vendor Withdrawal/Refund Split Between Months/Years

Thanks for coming back, @BJP2. It's my pleasure helping you today. 

 

I completely understand how you're concern about handling your ACH overpayment from last year and got a refund this month from a vendor. 

 

First off, let's enter a vendor credit to make sure it will hit the expense account you use for this vendor. Then, let's deposit the money you got from a refund. Here's how: 

 

  1. Click the + New tab from the left menu. 
  2. Choose Vendor Credit.
  3. In the Vendor drop-down menu, select a vendor.
  4. Enter the Category details or Item details as to how you record purchases with this vendor. 
  5. Click Save and close.

 

Once done, follow these steps below to deposit the refund:

 

  1. Click the + New tab from the left menu. 
  2. Choose the Bank Deposit.
  3. In the Account drop-down menu, pick the account where you got the refund.
  4. In the Add funds to this deposit section, fill out the following fields: 
  • Received from: Choose the vendor who gave you a refund.
  • Account: Select Accounts Payable. Pick the A/P account to link the refund to the vendor credit.
  • Payment method: Enter ACH. 
  • Amount: Enter the amount of your refund.

         5. Click Save and close.

 

To keep your vendor expenses accurate, use Pay Bills to connect the bank deposit to the vendor credit. Here's how: 

 

  1. Go to the + New tab from the left menu.
  2. Choose Pay Bills.
  3. Select the bank deposit you've just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
  4. Select Save and close.

 

Concerning to your reconciliation, you can remove the filter from the reconciliation window so you can choose which period you want the transaction to post. I'd suggest consulting with your accountant to make sure your books are correct. 

 

For future reference, read through this article: How do I view, print, or export a reconciliation report?. This is useful for you and your accountant if you have trouble reconciling for the following month. 

 

Feel free to ask more questions here in the Community, @BJP2. We're always around to help. Have a great day ahead.

View solution in original post

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