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T1gerK
Level 2

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Trying to resolve an issue.  A $500 wire payment was made to a client and was recorded as an expense as there was no actual bill received. That wire was reversed as it was sent to an incorrect account. The bank, of course, deducted fees for the reversal from the amount so only $455 shows being deposited back to the checking account. How do I enter the transactions/deposit to show under the client account so it displays that the total amount paid to the client is only $1000 and not $1500 (a corrected wire was sent the next day and then another payment sent at a later date)?  If the transactions were the same amount, I would just exclude them, but since they aren't, I'm not sure how to handle correctly.

 

Screenshot attached to show what I mean.  

Solved
Best answer October 01, 2018

Best Answers
ParkwayInc
Community Champion

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Hi there @T1gerK:

@lynda and I want to help you (and others) out with your tricky transaction.  So, it is our understanding that you paid your vendor using an expense and then the payment was sent back with the fees deducted from the bank.  Your original bill from your vendor was $1,500.00.  You paid $500 and then that payment was returned as $455 and a bank fee charged for $45.00.  You wanted to know how to show the correct total bill paid and reflect the bank charges as well.

In this video, we walk you thru the above scenario and demonstrate how to tackle this intricate transaction.



Basically, you need to do the following:

 

First we demonstrate the initial bill in the system for 1500.00 and the previous payment for 1000.00 This leave you with an outstanding balance of $500 on the bill.

 

  1. Pull up the vendor that had the bill, in our example we used your screen name. and locate the expense that was pushed through the bank feed but not matched as a bill payment.
  2. Go to the expense (wire) of $500.00, open it and add the bill from the tray to turn that expense into a bill payment. This will make the bill paid in full
  3. Now to document the returned wire transfer:
  4. Go to the bank feed screen.
  5. Find the deposit transaction for $455 (which was the $500 -$45 fee).
  6. Open it by clicking "add" and then click the split button on the screen.
  7. Add the vendor name FIRST and then the account accounts payable there for the first line.
  8. Enter the amount of $500.
  9. Drop down a line and add the expense for the bank fee to bank service charges and a minus -$45.00 line item.   This will make the transaction net at $455.00
  10. Once you complete and save all the steps above , it will raise the balance for that vendor back up by the $500 that was returned.
  11. Go back to the vendor and pay the remaining balance of $500.00. against the Accounts Payable Balance.

 

Now, we hope that we understood your question.  If not, please reach out to us.  We are here to help you!

View solution in original post

13 Comments 13
Rasa-LilaM
QuickBooks Team

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Hello there, t1gerk. 

 

Welcome aboard in the Online Community. I’m here to ensure the bank fee is properly recorded so it won’t throw off your record.

 

In situations like this, you’ll need to create an expense account to record the deducted fee. I’ll walk you through the steps:

  1. Go to Accounting on the left panel.
  2. Then select Chart of Accounts.
  3. Click on the New tab.
  4. Click on the Account Type drop-down and choose Expenses.
  5. Under Name, enter Bank Fees.
  6. Click on Save and Close.

Once done, let’s go ahead and create a Product/Service item. Please follow the step by step instructions below:

  1. Go to the Gear Icon at the top.
  2. Select Products and Services.
  3. Choose New on the right hand side
  4. Select Service.
  5. Then name it Bank Fees.
  6. Under Income Account, select the Expense account you just created.
  7. Click on Save.

Next, write a check and set the check number to EFT.  Just make sure to select the Bank Fees account and enter the amount.

 

That'll do it. After following the resolution steps, the bank fee will be correctly recorded in QuickBooks.

 

Let me know if you have questions about working in QuickBooks. I'll be right to answer them. Have a great day ahead.

T1gerK
Level 2

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Rasa-LilaM,

Thank you for the reply, but I'm not sure that answered my actual questions. 

 

The vendor account currently shows that we have a total of $1500 in expenses that have been paid, but only $1000 has truly been paid due to the returned wire. How do I make the account reflect that with the "deposit" of the reversed wire? 

 

Sorry if I'm not following what you mean.

Rasa-LilaM
QuickBooks Team

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Hello again, t1gerk.

 

Thanks for keeping me posted. I'll guide you through the steps on how to record the return payment.

 

You’ll need to create a $500 deposit and post the amount to your Accounts Payable. Doing so will show that your vendor still owes you that amount.

 

Here's how:

 

  1. Click on the Plus (+) icon at the top.
  2. Choose Bank Deposit.
  3. Select the correct bank account.
  4. In the Add funds to this deposit table, enter the vendor’s name.
  5. In the Account section, make sure to select Accounts Payable.
  6. Fill in the necessary fields.
  7. Enter $500 in the Amount section.
  8. Click on Save and close.

If there's anything else that I can help you find in QuickBooks, leave a comment below. I'm here to lend a helping hand.

ParkwayInc
Community Champion

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Hi there @T1gerK:

@lynda and I want to help you (and others) out with your tricky transaction.  So, it is our understanding that you paid your vendor using an expense and then the payment was sent back with the fees deducted from the bank.  Your original bill from your vendor was $1,500.00.  You paid $500 and then that payment was returned as $455 and a bank fee charged for $45.00.  You wanted to know how to show the correct total bill paid and reflect the bank charges as well.

In this video, we walk you thru the above scenario and demonstrate how to tackle this intricate transaction.



Basically, you need to do the following:

 

First we demonstrate the initial bill in the system for 1500.00 and the previous payment for 1000.00 This leave you with an outstanding balance of $500 on the bill.

 

  1. Pull up the vendor that had the bill, in our example we used your screen name. and locate the expense that was pushed through the bank feed but not matched as a bill payment.
  2. Go to the expense (wire) of $500.00, open it and add the bill from the tray to turn that expense into a bill payment. This will make the bill paid in full
  3. Now to document the returned wire transfer:
  4. Go to the bank feed screen.
  5. Find the deposit transaction for $455 (which was the $500 -$45 fee).
  6. Open it by clicking "add" and then click the split button on the screen.
  7. Add the vendor name FIRST and then the account accounts payable there for the first line.
  8. Enter the amount of $500.
  9. Drop down a line and add the expense for the bank fee to bank service charges and a minus -$45.00 line item.   This will make the transaction net at $455.00
  10. Once you complete and save all the steps above , it will raise the balance for that vendor back up by the $500 that was returned.
  11. Go back to the vendor and pay the remaining balance of $500.00. against the Accounts Payable Balance.

 

Now, we hope that we understood your question.  If not, please reach out to us.  We are here to help you!

View solution in original post

T1gerK
Level 2

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

YES!! Thank you so much- this explained/answered everything!  

I guess the biggest thing I wasn't getting was that I had to put in an actual bill to apply the "expense/payment" towards. Thank you both!

UniStone1
Level 1

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

How do you do this on quickbooks desktop manually?  I do not have bank feeds linked..  Using Quickbooks Enterprise Solutions 17.0

RenjolynC
QuickBooks Team

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Hi UniStone1,

 

In QuickBooks Desktop, you can record the returned wire as a deposit. First, you'll have to enter the bill in the system and make a payment just like ParkwayInc's example.

 

Then, follow these steps to record the returned wire:

  1. Click Banking located at the top.
  2. Select Make Deposit.
  3. Choose the bank account from the Deposit To drop-down list.
  4. Select the Date.
  5. In the first line, choose the vendor from the Received from drop-down menu.
  6. Enter the amount (This will be the actual amount of the wire transfer).
  7. In the second line, enter the bank charges as a negative item.
  8. Click Save and Close.

Once done, the actual amount credited will be recorded in the bank account. 

 

Please let me know if you have any additional questions. Thanks.

Erica11
Level 1

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

While this method makes the account balance, when it comes time to prepare 1099's it makes it appear like the vendor was paid twice. (While my situation was different numbers, using this example, it appears like the vendor received $2,000 instead of just $1,500). How do I prevent this from happening?

Emily M
QuickBooks Team

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Welcome to the Community, @Erica11.

 

I’m happy to help you with how preventing the balance showing that it was paid twice. You can make Journal Entries to zero out that balance.

 

Here’s how:

 

  1. Select the + New button.
  2. Click Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Pick Save and new or Save and close.

 

If you have any other questions, feel free to reach back out to me.

CHMM
Level 2

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

I'm following the steps but How do i pay from accounts payable it doenst give me that option 

this step I need help with please 

  1. Go back to the vendor and pay the remaining balance of $500.00. against the Accounts Payable Balance.

 

MaryJoyD
QuickBooks Team

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

I can help you in recording your transactions, @CHMM.

 

You can add a bill in QuickBooks Online (QBO) to record those bills you received from your vendors. When it's due, you can record the payment of those accounts payable through Pay bills

 

Here's how:

  1. Click the + New button and choose Pay bills
  2. Set all the necessary information.
  3. Select the checkbox for each bill to pay.
  4. Enter the amount of the payment to be applied to the open bill. 
  5. Click on Save and printSave, or Save and close.

Check this article for more information: Enter and pay bills.

 

From here, you can run Vendor Balance reports to check the total amount you owe each vendor. You can check out this article for additional information: Run Reports.

 

Let me know if you have any questions or clarifications with your transactions. I’ll be here to help you out. Take care and have a great day!

hvanrhijn
Level 1

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

I had a similar situation as OP, except it was one payment  to our vendor (approx 2400, and then returned at 2200 a week later due to exchange rate differences and an error in the wire transaction). The method you suggested works well to record the deposit back into quickbooks, however the bill is still shown as 'paid' for that vendor. How do I change it so that it shows that I still owe that vendor money, so when I go to resend that money, that I can record the bill as paid? Thanks

ShiellaGraceA
QuickBooks Team

Sent a wire payment, but it was reversed. The reversed amount is less than the original wire.

Thanks for joining us here, @hvanrhijn.

 

I'll share the steps on how to correctly handle your returned vendor payment. Yes, you'll want to make a deposit to the returned amount using the A/P account. This way, you can link the deposit to the bill payment.

 

To create a deposit:

 

  1. Go to +New.
  2. Select Bank deposit.
  3. Scroll down towards the Add funds to this deposit section, then choose the A/P account under Account.
  4. Enter the Amount and other info.
  5. Click Save and close. See the image below.

 

 

 

Next, unlink the bill payment from the bill. Here's how:

 

  1. Go to Expenses, then choose the Expenses tab.
  2. Look for the bill in question, then tap View/Edit.
  3. In the upper right corner of the bill, select the payment link and then the Date.
  4. This will open the Bill Payment transaction, remove the checkmark that corresponds to the Bill.
  5. Click Save and close. Then, Yes when prompted.

 

When you're ready to resend the money, just open the bill and then click Mark as paid. The deposit will appear on the right part of your Bill Payment screen. See the image below.

 

 

 

 

I'll be adding this link here in case you need help managing vendor-related tasks: Enter expenses, pay bills, write checks, and manage suppliers.

 

Reach out to me again if you have other questions or concerns with vendor payments. I'm more than happy to assist you. Take care and have a wonderful rest of the week.

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