Received a reimbursement for an expense from one vendor that was paid to a different vendor.

I know the steps to record the reimbursement you received from your vendor, Leon. I'll explain the details about this below.

Since you've paid the wrong vendor, you will have to create a clearing account and record a journal entry to clear out the expense and transfer it to the correct vendor. To start, you should create a clearing account by following these steps:

1. Go to the Gear icon, then select Chart of Accounts.
2. Click the New button, then enter the Account name.
3. Select Bank under Account type, then select the Detail Type.
4. Once done, click Save.

Once you have created the clearing account, you can proceed to create the journal entries. Before doing so, ensure that you use an expense account as the category for the expense. Follow the steps below to guide you:

1. Click the +New button, then select Journal Entry.
2. In the Account column, select the expense account you used when creating the expense, and enter the amount in the Credits column, then select the vendor where you received the reimbursement.
3. On the next line item, select the Clearing account you previously created, then enter the same amount in the opposite column.
4. Once done, click Save and new.
5. On the new entry, select the Clearing account, enter the amount in the Credits column, and select the vendor where you transfer the expense.
6. In the next line item, select the expense account, enter the amount in the opposite column, and select the vendor where you transfer the expense.
7. Once done, click Save and Close.

Please note that if you used items instead of a category for the expense transaction, the above steps will not apply. Also, if the amount shows a negative amount in the vendor balance, it is due to the credit you transferred from the wrong vendor. Therefore, it is advisable to contact your accountant for further assistance with recording the reimbursement process.

Additionally, if you receive a refund or vendor credit from a vendor, you can record it and apply it to future transactions in QuickBooks Online.

Let me know if you have other questions about recording reimbursements or transferring expenses in QuickBooks Online. I'll be around the clock and get back to you as long as you need my assistance. 

I'm sorry, I didn't make it more clear.  It wasn't a mistake, the one vendor agreed to reimburse us for an expense we paid to a different vendor.  We paid  to have work done on a rental property and the rental property then reimbursed us for the monies we paid to the contractor.

Thank you for the clarification, leonlashway . 

If you have paid an expense to a different vendor that you need to reimburse, you can create a clearing account and record it in the journal entry. This will ensure that the expense is cleared out and transferred to the right vendor at the same time. You can find more detailed steps by following the instructions provided by my colleague.

However, please note that the instructions mentioned above are not applicable if you have used items instead of a category for the expense transaction. In such a case, it is advisable to seek assistance from your accountant to ensure accurate results.

Furthermore, you can also record or refund from a vendor in QBO: Enter vendor credits and refunds in QuickBooks Online.

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