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TammieMB
Level 1

An uncashed bill pay check deposited back into my company checking account

I use Quickbooks Online and I have 2 questions.

1 - A customer overpaid us last April. There was never a credit on his account. I was just told that I had to refund part of his payment, so I did in the form of a bank bill pay check (I also wrote a check in QBO so it would match the corresponding item when it came over from the bank feed). By June the customer told us that he never received the check, so I stopped payment on it and the money was deposited back into my company checking account. I wrote him another check the exact same way...this check he cashed. I'm not sure that I've recored any of this the correct way in QBO. I need all of the detailed steps with the correct way to do it. 

2 - Last December I wrote a check from my bank bill pay to one of our vendors to pay for 4 invoices.  (I also wrote a check in QBO so it would match the corresponding item when it came over from the bank feed). Later in December (by mistake) I paid one of those invoices again the same. In January of this year the vendor mailed the check back to me with a note telling me that I had double-paid one of the invoices.  Since the check was never cashed (after 90 days) the bank placed a stop payment on it and deposited the money back into my company checking account a few days ago. 

Neither of these incidents are "new money" or new income. I need specific, detailed steps how to correctly record these in QBO. I appreciate any help I can get as I'm sure this has happened to someone else. 

1 Comment
ReymondO
QuickBooks Team

An uncashed bill pay check deposited back into my company checking account

Thanks for posting here in the Community, @TammieMB. I'll be glad to help you record these transactions in QuickBooks.

 

For your first concern, what you did was correct. Since you've wrote him another check to offset his overpayment, you can record this payment as a refund in QuickBooks. Let me show you how:

 

  1. Click the + New icon.
  2. Select Check
  3. Choose the customer you want to refund from the Payee ▼ drop-down.
  4. From the Payment account ▼ drop-down, select the bank account where you deposited the overpayment too.
  5. On the first line of the Category column, click an Accounts Receivable.
  6. Enter how much you want to refund in the Amount field.
  7. Fill out the other fields as you see fit, then select Save and close.

 

Once done, link the refund to the customer's overpayment:

 

  1. Select + New icon.
  2. Click Receive payment.
  3. Select the same customer you used for the check.
  4. Fill out the other fields as you see fit.
  5. Under the Outstanding Transaction section, select the checkbox for the check that you've  created.
  6. Make sure the payment is equal to the open balance, then click Save and close.

 

For your second concern, since the bank deposited your money back to your company's checking account, we can create a refund from a vendor to record this payment. Let's simply follow the steps provided in this article: Enter a refund from a vendor.

 

You can also run the Customer Balance Detail report to know how much each customer owes you. On the other hand, the Expenses by Vendor Summary report let's you view your total expenses for each vendor. Just go to Reports and search for these reports.

 

That's it! Please let me know if there's anything else I can do to be of assistance. More power to your business!

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