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KerriHaughian
Level 2

Quickbooks Online: How do you record both the debit and return for a stopped payment to a supplier in the bank feed?

For Quickbooks Online: After our PAD was cancelled with our supplier, they debited our account. 3 days later the payment was returned due to a stop payment at our financial institution. How do I reconcile the bank feed with the debit and credit for the payment?

Solved
Best answer October 19, 2020

Best Answers
RenjolynC
QuickBooks Team

Quickbooks Online: How do you record both the debit and return for a stopped payment to a supplier in the bank feed?

Thanks for taking the time to get back here, KerriHaughian.

 

You'll want to create an expense or write a check to debit and credit the bank for the amount that was taken out. To make sure you select the correct account from the category, I recommend consulting with your accountant for advice. 

 

You can also find an accountant here: Find an Accountant: QuickBooks ProAdvisor - Intuit

 

To write a check or expense, here's how:

 

  1. Sign in to your QuickBooks Online account.
  2. Go to the + New icon on the left panel.
  3. Select Expense or Check under Vendors.
  4. You can leave the Payee blank and enter the Category details.
  5. Click Save and close.

I've got this article for reference: Enter, edit, or delete expenses in QuickBooks Online.

 

For any additional question or other concerns with QuickBooks Online, please let me know. I'm always available to help you out.

View solution in original post

4 Comments
KlentB
QuickBooks Team

Quickbooks Online: How do you record both the debit and return for a stopped payment to a supplier in the bank feed?

 

I can help you with that, KerriHaughian.

 

When you got a refund for a business expense or canceled project, you can record the payment by linking a bank deposit to a vendor credit. Before diving in, let's make sure that the bill and bill payment are properly recorded. This way, you'll have accurate vendor expenses. 

 

Once done, you'll need to enter a vendor credit to ensure that the credit hits the expense account you use for that vendor. Here's how:

 

  1. Click the + New button.
  2. Select Vendor credit.
  3. In the Vendor dropdown, select your vendor.
  4. Enter the category, product, or service you’re getting credit for.
  5. Click Save and close.

Then, you'll have to deposit the money you got from the refund:

 

  1. Click the + New button.
  2. Select Bank Deposit.
  3. In the Account drop-down menu, choose the account where you got the refund.
  4. Go to the Add funds to this deposit section, then select the vendor who gave you the refund.
  5. Choose Accounts Payable from the Accounts column.
  6. Enter the amount of your refund.
  7. Click Save and close.

Lastly, link the bank deposit to the vendor credit using the Pay Bills option:

 

  1. Click the + New button.
  2. Choose Pay Bills.
  3. Select the bank deposit you just created. (The amount of the vendor credit will be shown in the Credit Applied field and the Total payment should be $0.00.)
  4. To complete the process, click Save and close.

If you need to track all the money you've paid to a vendor for the year, you can customize the Transaction List by Date report

 

Do you have any other questions in mind? Feel free to leave them below and I'll get back to you as soon as I can.

KerriHaughian
Level 2

Quickbooks Online: How do you record both the debit and return for a stopped payment to a supplier in the bank feed?

Thanks for your reply @KlentB! The problem is that there isn't a bill or bill payment. The payment that was taken was un-authorized and then returned 3 days later do to the stop payment thru our bank. So without a bill, invoice, expense, etc., how do you reconcile a payment that was withdrawn without approval then returned immediately? I've had someone else tell me to just add both the debit and credit to the specific supplier from the bank feed but the category would need to be declared by an accountant. Does this sound like a legitimate answer?
RenjolynC
QuickBooks Team

Quickbooks Online: How do you record both the debit and return for a stopped payment to a supplier in the bank feed?

Thanks for taking the time to get back here, KerriHaughian.

 

You'll want to create an expense or write a check to debit and credit the bank for the amount that was taken out. To make sure you select the correct account from the category, I recommend consulting with your accountant for advice. 

 

You can also find an accountant here: Find an Accountant: QuickBooks ProAdvisor - Intuit

 

To write a check or expense, here's how:

 

  1. Sign in to your QuickBooks Online account.
  2. Go to the + New icon on the left panel.
  3. Select Expense or Check under Vendors.
  4. You can leave the Payee blank and enter the Category details.
  5. Click Save and close.

I've got this article for reference: Enter, edit, or delete expenses in QuickBooks Online.

 

For any additional question or other concerns with QuickBooks Online, please let me know. I'm always available to help you out.

View solution in original post

KerriHaughian
Level 2

Quickbooks Online: How do you record both the debit and return for a stopped payment to a supplier in the bank feed?

Perfect! Thanks RenjolynC!

 

I just wanted to confirm that the directions that I was given were legitimate and would keeps the books without error! Much appreciated!!

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