Subcontractor Payment rejected by bank

Thank you for visiting the Community today, BLDB.

Maintaining accurate records of entries, particularly payments to sub-contractors, is crucial for easily matching transactions and keeping your books in order. Let me guide you on how to address your concerns.

In cases like this, you'll have to edit the bill payment check. You'll have to replace ACH with the check number entered in your check instead. 

 Simply go to the register, and locate the entry. Update the information in the Number Type column to the correct one. 

As for the paper check, let's change the check number and type ACH. Also, briefly describe what happened to the transaction in the Memo field. By doing so, you can avoid deleting the payment and ensure your records remain accurate.

Regarding the refund from Melio, deposit the check and utilize the Accounts Payable account so you can tie the refund to the vendor credit. Here's how:

1. In your company file, head to the Banking menu on the left panel and choose Make Deposits.
2.  This action will open the Payments to Deposit window.
3. From there, click the OK button.
4. In the Make Deposits window, tap the Received from drop-down and select the vendor who sent you the refund (Melio).
5. From the Account drop-down, choose the appropriate Accounts Payable account you wish to use.
6. In the Amount column, enter the actual amount of the vendor check.
7. Enter a memo, check number, payment method, and class so you'll know what happens to the entry.
8. Press the Save & Close button.
   
   

For more information on different ways to handle vendor refunds, refer to this article: Record a vendor refund in QuickBooks Desktop. The solutions provided are based on different scenarios, so choose the one that addresses your concern.

Moreover, refer to this link to effectively manage your payables and track down missing bills: Pay bills in QuickBooks Desktop.

For your future reference, I have a collection of resources that provide valuable insights into managing bills, inventory, and other vendor-related tasks. Feel free to explore them whenever you need guidance:

• Use Online Bill Pay in QuickBooks Desktop
• Accounts Payable workflows in QuickBooks Desktop

Keep me posted if you have additional questions on how to handle vendor refunds, bills as well as payments. I'd be delighted to provide the assistance you need. Enjoy the rest of the day, BLDB.

Hello Rasa-LilaM,

Thank you for this information.  Just to clarify, are you saying the following?

• change the paper check to ACH
• enter a memo that this was the rejected payment
• change the existing ACH bill payment to the paper check number that was sent
• match the refund to the deposit I created

Thank you!

Hi there, BLDB.

I appreciate you for going over the information provided by my colleague. I'm happy to clarify things for you, so you can keep your transactions organized and your books in order.
 

Yes, to handle the rejected payment, you'll need to replace ACH with the check number entered in your bill payment check instead. Then, update the check number of the paper check into "ACH" and enter a memo saying that this was the rejected payment. Lastly, you'll need to deposit the check using the Accounts Payable account to tie the refund to the vendor credit.

If you need any help paying your bills, you can check out this article: Pay bills in QuickBooks Desktop.

To get a comprehensive overview of your business, you can run reports. Here's a guide to help you understand how to do that: Understand Reports.

Let me know in the comment section below if you still have a concern about matching transactions and vendor refunds. I'll be waiting for your response and will be always glad to lend a helping hand.