Reissue lost Bill Pay check for last year

patrick3 · ‎January 25, 2021

I sent a payment to a vendor through my bank's online Bill Pay system, but he didn't get it. So I had the bank stop payment on that check and credit my account. Then I wrote another check to him.

I've searched and learned that I need to enter the new check into QuickBooksOnline and create a bank deposit on the same day to offset the new payment.

The problem is that the first payment was sent in December of last year and was immediately deducted from my account since it was sent by the bank. The refund and new check were done in January of this year. So I'm not sure how to handle this properly for 1099 preparation. QBO is showing that I made a large payment to him in December, but he really didn't get paid until January.

How do I handle this situation in QBO to get it correct?

Mark_R · ‎January 25, 2021

I've got your back on recording a refund from the bill payment that was processed last year, @patrick3.

Firstly, I want to appreciate the efforts you've taken to learn how to handle this situation. To sort it out, you'll have to enter a vendor credit instead of writing a check. And create a vendor refund using a bank deposit with the last year's date. Then, link them together.

Before we start, please be guided that recording this transaction may affect your QuickBooks' current data. Thus, seeking help from your accountant is recommended. Below are the steps to complete the process:

Step 1: Enter a vendor credit. This makes sure the credit hits the expense account you use for this vendor.

Click the + New button, then select Vendor credit.
Select the vendor from the drop-down.
Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
Hit Save and close.

Step 2: Deposit the money you got from the refund.

Click the + New button, then select Bank Deposit.
Select the bank account where you got the refund.
In the Add funds to this deposit section, fill out the following fields.
1. Received from: Select the vendor who gave you a refund.
2. Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
3. Payment method: Enter the method your vendor used to refund you.
4. Amount: Enter the amount of your refund.
Select Save and close.

Step 3: Use Pay Bills to connect the bank deposit to the vendor credit. This last step is to keep your vendor expenses accurate.

Click the + New button, then select Pay Bills.
Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
Select Save and close.

The steps above will lead you to the right track. I'm also adding these articles to help guide you in preparing your 1099 in QuickBooks Online:

Should you need any assistance managing refunds in QuickBooks Online, I'm available here to help any time!

View solution in original post

Mark_R · ‎January 25, 2021

I've got your back on recording a refund from the bill payment that was processed last year, @patrick3.

Firstly, I want to appreciate the efforts you've taken to learn how to handle this situation. To sort it out, you'll have to enter a vendor credit instead of writing a check. And create a vendor refund using a bank deposit with the last year's date. Then, link them together.

Before we start, please be guided that recording this transaction may affect your QuickBooks' current data. Thus, seeking help from your accountant is recommended. Below are the steps to complete the process:

Step 1: Enter a vendor credit. This makes sure the credit hits the expense account you use for this vendor.

Click the + New button, then select Vendor credit.
Select the vendor from the drop-down.
Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
Hit Save and close.

Step 2: Deposit the money you got from the refund.

Click the + New button, then select Bank Deposit.
Select the bank account where you got the refund.
In the Add funds to this deposit section, fill out the following fields.
1. Received from: Select the vendor who gave you a refund.
2. Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
3. Payment method: Enter the method your vendor used to refund you.
4. Amount: Enter the amount of your refund.
Select Save and close.

Step 3: Use Pay Bills to connect the bank deposit to the vendor credit. This last step is to keep your vendor expenses accurate.

Click the + New button, then select Pay Bills.
Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
Select Save and close.

The steps above will lead you to the right track. I'm also adding these articles to help guide you in preparing your 1099 in QuickBooks Online:

Should you need any assistance managing refunds in QuickBooks Online, I'm available here to help any time!

patrick3 · ‎January 26, 2021

Thank you so much!

CLCC · ‎February 14, 2023

This worked beautifully for my vendors. However, how do I resolve this exact situation when the check is a reimbursement check issued to an employee? I cannot generate a vendor credit because the person I issued the check to is categorized as an employee. (The reimbursement check was sent via the bank bill pay system, was not received and refunded by the bank, and then reissued.) The software does not allow me to select an employee in the vendor credit drop down.

Daniela_A · ‎February 14, 2023

I'll be more than happy to assist you with your concern, @CLCC.

In your case, we can simply create a bank deposit in QuickBooks Online to account for the refund you received from your bank and reissue a check for that employee. You may proceed as follows:

Create bank deposit:

Click the + New button.
Choose Bank Deposit.
In the Receive From column, select the bank.
Go to the Add funds to this deposit section.
Enter the reimbursed amount and choose expense account.
Add a memo as needed, then click Save and close.

To issue a check, here's how:

Select + New.
Select Check.
Choose the employee from the dropdown ▼.
From the Bank account dropdown ▼, select the account the check withdraws money from.
Complete the check fields you need.
Hit Save and close.

For more details about how bank deposit works in QBO, check out this article: How to Record Bank Deposits in QuickBooks Online. On the same link, you'll find steps on how to review and delete a deposit as well as adding bank fees.

If you need more help in accomplishing your other tasks, please let me know by adding a comment below. I'll always have your back. Have a good one.

Whoadeb · ‎December 12, 2023

Hello,

I tried this in QBDT and it worked but when I try to reconcile my bank account I'm off by the exact amount of the credit for the bill payment check the bank issued. What did I do wrong or did I miss a step?

Thanks in advance

~D

ShyMae · ‎December 12, 2023

Hi there, Whoadeb.

To assist you more effectively, I'd like to ask what steps you followed and if possible, could you please share a screenshot? This will help me understand the situation better and explore potential solutions that can resolve your concerns.

Please let me know through the reply button. I'd be more than happy to assist you. I appreciate your cooperation.

Whoadeb · ‎December 12, 2023

Sure thing.

I posted a deposit from the bank for the lost bill pay check as received from the vendor, from the A/P account.

I issued a vendor credit.

I went to pay bills window and the vendor credit and deposit offset each other.

Then when reconciling the bank account, it is over by the amount of the deposit.

Whoadeb · ‎December 12, 2023

So I know why my account won't reconcile I just don't know how to fix it.

The credit was issued by the bank in the same month I ordered a new bill payment check. I showed the bank's credit but there is no "bill" to pay. Am I going in the right direction?

ShaniamarieC · ‎December 12, 2023

I want to make sure this concern is taken care of, @Whoadeb. Let's check to help you ensure your transactions are under the correct transaction.

The first thing that we have to do is to delete and recreate the bill payment. To recreate you can follow these steps:

Go to the Vendors menu, then select Pay Bills.
Select the correct accounts payable account from the dropdown.
Select the checkboxes of the bills you want to pay from the table.
Note: To unmark or mark all the bills in the list, select Clear Selections or Select All Bills.
Set any discount or credit that you want to apply to the bills.
Select the payment method:
Select Pay Selected Bills.
Select Done.

Moreover, you can check the Vendor in the Vendor center to make sure that the balance total is 0 out.

Additionally, here are some articles that you can read to help you track bills and record payments:

Enter and manage bills and bill payments in QuickBooks Online.

If there are any additional questions, concerning Pay Bill, I'm just a post away. Have a lovely day!

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Reissue lost Bill Pay check for last year