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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! Go to Solution.
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.
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.
Now, we hope that we understood your question. If not, please reach out to us. We are here to help you!
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:
Once done, let’s go ahead and create a Product/Service item. Please follow the step by step instructions below:
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.
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.
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:
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.
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.
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.
Now, we hope that we understood your question. If not, please reach out to us. We are here to help you!
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!
How do you do this on quickbooks desktop manually? I do not have bank feeds linked.. Using Quickbooks Enterprise Solutions 17.0
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:
Once done, the actual amount credited will be recorded in the bank account.
Please let me know if you have any additional questions. Thanks.
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?
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:
If you have any other questions, feel free to reach back out to me.
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
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:
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!
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
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:
Next, unlink the bill payment from the bill. Here's how:
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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