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cbra2351
Level 1

How to record a refund check from a bank, for a check that was sent out as an online bill pay to a vendor?

We mailed a check out to our vendor through our bank's "bill pay" service.

The check was lost in the mail and the bank sent us a refund for the amount.

How can I record this check without counting it as income or crediting the vendor who we originally sent it to?

Solved
Best answer January 26, 2021

Best Answers
Jen_D
Moderator

How to record a refund check from a bank, for a check that was sent out as an online bill pay to a vendor?

Thanks for posting here, @cbra2351,

 

You need to first record the refund to the bank where it was originally deposited for reconciliation purposes. It can be recorded as journal entry or a bank deposit. As long as the entry increases the bank balance to account for the return of funds, then you should be fine.

 

If you need to transfer the refunded amount to a new bank, there are several options you can do. You can create a transfer between two accounts using any of the following:

  • Transfer
  • Check
  • Imported Bank Transaction
  • Journal Entry

You will find these options when you click on the + New button in QuickBooks. I'll be adding the following link to guide you with the different methods of transferring funds between accounts: Transfer funds between accounts

 

You can also visit the following links to learn your away around QuickBooks:

For further help, please post here again. I'll be more than happy to share some more insights whenever you need it. Have a wonderful day!

View solution in original post

3 Comments 3
Joesem M
QuickBooks Team

How to record a refund check from a bank, for a check that was sent out as an online bill pay to a vendor?

Hello there, @cbra2351.

 

You can create a Journal Entry to record the transaction, so it doesn't count as an income or credit it to the vendor. Let me guide you how:

 

  1. Go to the +New button in the left panel.
  2. Under OTHER columns, select Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Select Save and New or Save and Close.

 

For detailed steps, check out this article: Create Journal Entries

 

Upon sharing the steps above, I'd still suggest contacting your accountant. They can guide you with the process to ensure your books are accurate. You can also find one by checking out this article: Find an accountant or bookkeeper.

 

Also, to help you with your task in QuickBooks, just go to this link: QuickBooks Basics. Then, click + More Topics to view related articles about managing your sales, expenses, inventory, taxes, and running reports.

 

If there's anything else that I can help you with, please let me know by leaving a comment below. I'll be here to lend a hand. Have a good day.

cbra2351
Level 1

How to record a refund check from a bank, for a check that was sent out as an online bill pay to a vendor?

I'm a bit confused on how I would record the actual deposit of the check to our new bank.

Do I not need to record the deposit because I've already made the journal entry and then I can go ahead and deposit it to the bank regularly?

Jen_D
Moderator

How to record a refund check from a bank, for a check that was sent out as an online bill pay to a vendor?

Thanks for posting here, @cbra2351,

 

You need to first record the refund to the bank where it was originally deposited for reconciliation purposes. It can be recorded as journal entry or a bank deposit. As long as the entry increases the bank balance to account for the return of funds, then you should be fine.

 

If you need to transfer the refunded amount to a new bank, there are several options you can do. You can create a transfer between two accounts using any of the following:

  • Transfer
  • Check
  • Imported Bank Transaction
  • Journal Entry

You will find these options when you click on the + New button in QuickBooks. I'll be adding the following link to guide you with the different methods of transferring funds between accounts: Transfer funds between accounts

 

You can also visit the following links to learn your away around QuickBooks:

For further help, please post here again. I'll be more than happy to share some more insights whenever you need it. Have a wonderful day!

View solution in original post

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