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LarryPru
Level 1

Bill Pay

I made a payment in bill pay, but then realized it was an overpayment. The vendor shredded the check upon receipt. 

 

How do I get credited in my account? The money was withdrawn from my account at the time the check was written, but the check will obviously not be cashed now.

 

 

5 Comments
Joesem M
QuickBooks Team

Bill Pay

Welcome to the Community space, @LarryPru.

 

You can record a bank deposit once the vendor returns the amount. This way, it will be credited to your account. Let me show you how.

 

  1. Go to + New and then select Bank deposit.
  2. Select the bank account from the drop-down menu.
  3. Select the first payment you want to deposit.
  4. Put a checkmark on the payment you want to deposit.
  5. Click Save and close.

 

You can click this article to see more information about how bank deposit works in QuickBooks: Record and make bank deposits in QuickBooks Online.

 

Please refer to this article on how you can find your bank deposit transactions in your account registers so you can review or edit them: Find, review, and edit transactions in account registers.

 

After managing your transactions, you can reconcile your account. This article will show you the step-by-step process: Reconcile an account in QuickBooks Online.

 

If I can be of additional assistance while working with deposits or anything in QuickBooks, don't hesitate to let me know. I'd be more than willing to lend you a hand.

 

LarryPru
Level 1

Bill Pay

Thanks, but I don't need help entering a deposit.

 

I made a payment through Bill Pay, but the check is not going to be deposited by the vendor. So, I need to get a credit back in my bank account for that amount.

MaryLandT
QuickBooks Team

Bill Pay

Thanks for getting back to us, LarryPru.

 

You can record the overpayment if Bill Pay deposited the funds back to your account. 

 

In QuickBooks Online, you can enter it as a vendor credit, record the deposit, then link it to the vendor credit. Let me show you how:

 

Step 1: Enter a vendor credit and hit the expense account you use for the vendor

 

  1. Click + New.
  2. Select Vendor credit.
  3. In the Vendor drop-down, select your vendor.
  4. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
  5. Click Save and close.

Step 2: Deposit the money you got from the refund

 

  1. Click + New, then select Bank Deposit.
  2. On the Account drop-down menu, select the account where you got the refund.
  3. In the Add funds to this deposit section, fill out the following fields.
    • Received from: Select the vendor who gave you a refund.
    • Account: Select Accounts Payable
    • Payment method: Enter the method your vendor used to refund you.
    • Amount: Enter the amount of your refund.
  4. Click Save and close.

You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.

 

Step 3: Use Pay Bills to connect the bank deposit to the vendor credit

 

  1. Click + New, then select Pay Bills.
  2. Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. 
  3. Click Save and close.

The last step will keep your vendor expenses accurate.

 

How you enter the refund depends on how you record your purchases. If you got credit on a future purchase, you should enter a credit instead.

 

Let me know if you need anything else about this by commenting below. I'm always right here to help you.

LarryPru
Level 1

Bill Pay

I have reached out to Melio about this, but I have not received my money back yet.

 

So, this question is not about how to enter any of this information into QB. 

 

My question is how do I get the money back that was taken from my account, since the vendor is not going to be accepting the payment?

MaryLandT
QuickBooks Team

Bill Pay

Thanks for getting back to me, LarryPru.

 

I recommend checking with your bank to see if they can stop the transaction since your vendor won't accept the payment.

 

If the payment will still go through, the vendor should return the money to your bank account. Then, you can follow the steps I've provided above on how to record the overpayment.

 

I'm adding this link for future guide on how to pay your expenses in QuickBooks: Pay bills in Online Bill Pay.

 

Keep me posted if you have follow-up questions with QuickBooks. I'm always glad to help you.

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