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Join nowI created a bill for a supplier with the details provided and the payment was issued. I was given the wrong account information, and the payment I attempted was reversed. Now the money has returned to our bank account, and it's showing in my bank feeds. How should I record the returned payment expecting that i have to pay the same amount when they get back to me with the correct information?
Please help me to how to record the over payment from bank feeds and also process the payment without creating another bill. Thanks in advance:)
I've got you covered, @Augustine B.
You can create a journal entry and a bill payment check to record the returned payment due to wrong account information. Let’s go through these steps one at a time:
Firstly, let's enter a reversing journal entry. Here's how:
Then, unlink the bill from the payment check and link it to the journal entry.
Lastly, you'll have to create a new bill payment check to record the new payment transaction.
Most importantly, I suggest seeking help from your accountant if you're unsure about these steps. This can get tricky and they know how to handle the next steps.
Let me know how it goes by leaving a comment below, @Augustine B. I want to make sure your concern is taken care of.
You may also want to run and customize reports in QuickBooks Online. This will help you view useful information about your business and transactions.
Have a great day ahead!
Hi Mark,
Much appreciated for your detailed response. I have entered a reversal journal entry and followed your steps. It was very easy. Thank you very much.
I am unsure, of how should I apply the refund amount appearing in bank feeds.
Greatly appreciate your response.
Thank you
Allow me to chime in, Augustine.
I'll help you match the bill payment to the refund amount that appears in bank feeds.
Let's locate the bill payment transaction using the Find match feature and match it to the bank transaction. I'll show you how.
If you're unable to see the bill payment transaction, you'll have the option to Exclude the refund transaction from bank feeds.
Check out this article for more details: Exclude a bank transaction you downloaded into QuickBooks Online.
I also recommend reconciling your account at least once a month to ensure bank and credit card statement balances match up with QuickBooks. For a complete guide, see this resource: Reconcile an account in QuickBooks Online.
You're welcome to post again if you need further assistance in QuickBooks. We're available to help you 24/7.
Hi Giovann,
Thank you for your reply. There is no matching transaction as there is no entry related to the deposit of returned payment. So how should I apply them? Should I apply as a deposit?
Also, I don't want to exclude the transaction.
I appreciate you for getting back to this thread, @Augustine B. Let me provide some insight on how to match and handle returned payments.
Since there are no matching transactions showing in the feeds, we can create and apply them as a deposit.
Here's how:
For more information, you may also check out this resource: Record and make bank deposits in QuickBooks Online.
Additionally, let me share some relevant articles you can utilize to help manage your bank transactions in QuickBooks:
Keep me posted if you have other questions about matching bill payments to the refund amount. I'll be happy to help you always. Stay safe!
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