Return due to payment error

rigojr-hotmail-c · ‎August 06, 2024

Hi QB Community! I hope everyone's doing great!

I have the following situation. Last week I accidentally registered a bill under the name of vendor ABC thinking it was vendor XYZ! This led to an erroneous payment to Vendor ABC for $300. After realizing my mistake, I emailed and requested the funds be returned. Vendor ABC was very helpful and returned the funds. Since then, I went ahead and deleted the bills under Vendor ABC and registered the bills under Vendor XYZ. BUT the payment is still in Vendor ABC, so I have a negative balance in their account, -this should be 0.

How do I register the returned funds? Logic tells me I should create a vendor credit? am I right or is this not the correct way to solve this?

Thanks in advance for your help -greatly appreciate it!

Just_me · ‎August 06, 2024

It's a negative balance, because you took away the invoice that the payment was posting against.

I don't know how your accountant would want you to deal with it, but mine had me delete the invoice and void the payment that was posted in the wrong vendor, with a note in the memo section explaining why the payment was voided.

View solution in original post

Just_me · ‎August 06, 2024

It's a negative balance, because you took away the invoice that the payment was posting against.

I don't know how your accountant would want you to deal with it, but mine had me delete the invoice and void the payment that was posted in the wrong vendor, with a note in the memo section explaining why the payment was voided.

rigojr-hotmail-c · ‎August 08, 2024

Dear @Just_me ,

Thanks for sharing, seems like a reasonable approach. But one inquiry remains: "In the bank transaction section, what should I match the returned funds to?" I have my bank account linked so it downloaded this transaction.

Thanks again for your support!

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Return due to payment error