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Level 1

Vendor was Overpaid, They Wrote Check, But Bounced

I use Quickbooks Desktop Premier.  I had a vendor that was overpaid, well he decided he did not want to do that portion of the work.  I entered a credit under the vendor for $15K and when I received his check posted the credit and deposit together. 

That's all fine and dandy but, his check bounced (NSF).  He gave us $15K in cash, we are not worried about the return check fee as it is too little.  So do I go post a credit again to his account and apply the deposit to it?  The only problem I see here is that it will show that he was paid out $30K instead of $15K  under the vendor tab and of coarse he is a 1099 sub-contractor.  I have to show two deposits so that my bank req will balance.  How would this be handled?

Solved
Best answer 01-04-2019

Best Answers
Highlighted
Moderator

Vendor was Overpaid, They Wrote Check, But Bounced

Greetings, @ISConstruction.

 

Thank you for joining the Community. I'd be happy to help you record the deposit to QuickBooks Desktop. 

 

Since the vendor gave you cash, you can create a deposit to Accounts Payable so you can link it to the overpayment that was recorded.

 

Here's how: 

  1. Go to the Banking menu.
  2. Select Make Deposits.
  3. On the Payments to Deposit window that appears, select the payments you want to deposit then click OK.
  4. In the Make Deposits window, click the Deposit To drop-down then choose the bank account where the payment will be deposited to.
  5. Enter the date.
  6. Enter all information about the cash payment.
  7. Make sure to use the Accounts Payable account offsetting the overpayment transaction.
  8. Click Save & Close.

I recommend checking this article for more information about this: Deposit customer payments.

 

If you need to reach out for more help our phone agents will be able to help you get to a resolution quickly.

 

Here's how:

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact.
  2. At the top right, select your product.
  3. Select your QuickBooks version.
  4. Select a topic.
  5. Click the Get Phone Number.

This information should help you record your bank fee charge and reversal. Let me know how things go once you've tried the steps. Feel free to comment below if you have other questions about QuickBooks. I'll be happy to answer.

View solution in original post

Highlighted
Anonymous
Not applicable

Vendor was Overpaid, They Wrote Check, But Bounced

I got you with this, ISConstruction.

 

You can handle this type of situation by just voiding the vendor credit check. Here’s how:

  1. Go the vendor’s transaction’s list.
  2. Click to open the vendor credit check.
  3. Click the drop down arrow under the Delete icon at the top.
  4. Select Void and type in bounced check on the Memo field.
  5. Click Save and Close.

Please don't hesitate to reach us again anytime you need help with QuickBooks. 

View solution in original post

Highlighted
Level 15

Vendor was Overpaid, They Wrote Check, But Bounced

You have this scenario:

 

The initial Payment is a deposit as AP, because you made the vendor credit for it. The Bounce is recorded as a "Deposit" to "Other Current Asset" for you. These two transactions Clear against each other and offset to net 0.

 

Meanwhile, you got "repaid" = a Deposit as "from" Other Current Asset = you Got repaid. There is no Vendor Activity involved, this is not more expense or income or anything other than, Hey, I did get that money, after all, that was owed to me from the Bounce. This is just banking, not vendor or 1099 stuff, now.

View solution in original post

4 Comments
Highlighted
Moderator

Vendor was Overpaid, They Wrote Check, But Bounced

Greetings, @ISConstruction.

 

Thank you for joining the Community. I'd be happy to help you record the deposit to QuickBooks Desktop. 

 

Since the vendor gave you cash, you can create a deposit to Accounts Payable so you can link it to the overpayment that was recorded.

 

Here's how: 

  1. Go to the Banking menu.
  2. Select Make Deposits.
  3. On the Payments to Deposit window that appears, select the payments you want to deposit then click OK.
  4. In the Make Deposits window, click the Deposit To drop-down then choose the bank account where the payment will be deposited to.
  5. Enter the date.
  6. Enter all information about the cash payment.
  7. Make sure to use the Accounts Payable account offsetting the overpayment transaction.
  8. Click Save & Close.

I recommend checking this article for more information about this: Deposit customer payments.

 

If you need to reach out for more help our phone agents will be able to help you get to a resolution quickly.

 

Here's how:

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact.
  2. At the top right, select your product.
  3. Select your QuickBooks version.
  4. Select a topic.
  5. Click the Get Phone Number.

This information should help you record your bank fee charge and reversal. Let me know how things go once you've tried the steps. Feel free to comment below if you have other questions about QuickBooks. I'll be happy to answer.

View solution in original post

Highlighted
Level 1

Vendor was Overpaid, They Wrote Check, But Bounced

This still does not answer my question.  I need to know how to handle the original check, and the cash payment in quickbooks so that it does not show in quickbooks that he paid me $30,000.00.  The bank registers are fine its just the vendor profile that now shows he paid $30K instead of just the $15K because of his bounced check.

 

Highlighted
Anonymous
Not applicable

Vendor was Overpaid, They Wrote Check, But Bounced

I got you with this, ISConstruction.

 

You can handle this type of situation by just voiding the vendor credit check. Here’s how:

  1. Go the vendor’s transaction’s list.
  2. Click to open the vendor credit check.
  3. Click the drop down arrow under the Delete icon at the top.
  4. Select Void and type in bounced check on the Memo field.
  5. Click Save and Close.

Please don't hesitate to reach us again anytime you need help with QuickBooks. 

View solution in original post

Highlighted
Level 15

Vendor was Overpaid, They Wrote Check, But Bounced

You have this scenario:

 

The initial Payment is a deposit as AP, because you made the vendor credit for it. The Bounce is recorded as a "Deposit" to "Other Current Asset" for you. These two transactions Clear against each other and offset to net 0.

 

Meanwhile, you got "repaid" = a Deposit as "from" Other Current Asset = you Got repaid. There is no Vendor Activity involved, this is not more expense or income or anything other than, Hey, I did get that money, after all, that was owed to me from the Bounce. This is just banking, not vendor or 1099 stuff, now.

View solution in original post

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