It's a pleasure to have you in the Community today,
@HPS2022. I'll walk you through how you can record the ACH payment refund that you received in QuickBooks Online (QBO).
Before we do so, let's ensure that your vendor's information is updated. This way, when you process an ACH payment, it'll go through and be delivered without an issue to your respective vendor. To begin, here's how:
- Access your QuickBooks Online account.
- On the left navigational bar, select Expenses and then choose Vendors.
- Click on the vendor's name you want to edit.
- Press Edit at the upper-right corner.
- The Vendor Information window will pop-up, edit the information needed.
- Lastly, click the Save button.
Once done, let's proceed to handling the ACH payment refund that you received. To do that, you'll need to create a clearing expense account and use it as the source account for the deposit. Here's how:
- On the top-right corner, click the Gear icon and then select Chart of Accounts.
- Select New.
- From the Account Type drop-down, select Expenses.
- Name the account as Clearing Expense Account.
- Click Save and Close.
Next move would be to create a deposit, the same amount you received from the ACH refund and then use the clearing expense account you created earlier. Feel free to visit this article to know more about how to create a deposit:
Record and make bank deposits in QuickBooks Online.
Once done, proceed to create a new check and bill payment to the vendor and use the clearing expense account as the expense and then the reason for the check. Doing this will zero out the clearing expense account and, at the same time, make the bill remain paid along with the original date and if there is inventory involved. After this, you can now process the ACH payment again.
In addition, I've got you this article to help you learn more about reconciling an account in QuickBooks:
Reconcile an account in QuickBooks Online.
You can also visit this page in case you encounter any errors along the process of reconciling your account in QBO:
Fix issues the first time you reconcile an account in QuickBooks Online.
Should you need further assistance handling the ACH refund you received in QuickBooks? Feel free to get back to me by clicking the Reply button below. I'll be more than happy to assist you once again. Take care!
