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Kelsie504
Level 1

bounced checks written to vendors and returned vendor payments

I'm reconciling our account for the first time and I'm seeing a lot of bounced checks written out to vendors as well as other returned vendor payments. The returned money appears in the register as deposits. Is there a certain way I should be dealing with them? So far I've just been entering the vendor as Received from and I've been categorizing it as Returned Check/Payment.

1 Comment
Rejeil_O
QuickBooks Team

bounced checks written to vendors and returned vendor payments

Welcome to Community @Kelsie504,

 

Let me step in and help you reconcile your account. For your bounced check from your vendor, you can create a journal entry and use the Accounts Payable under the Debit column then choose the name of the vendor. Once done, you can link it to the vendor bill payment. Follow these steps on how to record it in your QuickBooks Online account. Here's how:

 

  1. Create a Journal Entry.
  2. On the first row under the Account column, select the account you used to pay the bill and enter the amount under the Credits column.
  3. On the second row, choose Account payable and enter the amount under the Debits column. Then, choose the vendor's name on the far right under the Name column.
  4. Click Save and close.

 

For the returned vendors payment, you can enter a vendor credit to make sure that the credit hits the expense account you use for your vendor. Here's how: 

 

  1. Go to the + New button.
  2. Choose the Vendor credit tab.
  3. In the Vendor dropdown, select the vendor.
  4. Depending on how you record purchases with this vendor, enter the Category details or Item details.
  5. Click the Save and Close button.

 

Once done, you can refer to this link to proceed to Step 2: Enter a refund from a vendor in QuickBooks Online.

 

In case you'll need help reconciling your account, you can refer to this article: Reconcile an account in QuickBooks Online.

 

Just notify in the comment section if you have additional questions. I'll be around here in the Community to help. Take care and have a good one! 

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