@Mophetmom Thanks for chiming in on this. When you say "you should be able to then do a deposit in the current month to clear it out..." what exactly do you mean by that? I think you mean create a deposit transaction in QB for the amount BDC refunded to my bank account. But, what account should I make the deposit into? The original expense account I used to pay the bill in the first place? Is that what you mean by "clear it out" - by depositing (credit/decrease) into expense account to offset or reverse the original increase (debit) to the expense account with the entry of the create? Or is there another actual step or process to "clear it out"? Thanks in advance for your help!

What additional information would you like me to provide? My questions are as follows:

What happened in QB when BDC voided the payment?

What steps do I take in QB related to the refund of the bill amount that BDC deposited back into my bank account? 

When BDC refunded my bank account was there a transaction within BDC that will sync into QB to record the refund automatically?

Since I already completed the reconciliation for my bank account, exactly what steps do I have to follow in QB to address the discrepancy.

What happens in QB when I reprocess the bill in BDC? 

Honestly, it would be really helpful if someone could outline step by step everything that happens when BDC voids a payment. What happens exactly within BDC, what happens exactly within QB and then what steps need to be taken both in BDC and QB to fix it. 

I'm just an ordinary QBO user, not QBO professional, however I went through the exact set of questions you're asking, and there is no good news. There is no acceptable workflow IMO.  You basically have undo the voided entry and then create a journal entry or a bank deposit for the debit to your checking when the deposit from bill.com posts. 

The implementation is nothing short of horrible.  It's useless.  We stopped using it. 

Sorry there's not better news.

The issue of Bill.com voiding a payment (e.g. for a check that wasn't cashed) in a past reconciled period that causes a "Not Ready to Reconcile" error in Quickbooks in the next period has been a regular cause of frustration and lost time.  I am happy to report that I have found the following workaround.  It's still annoying to have to do this, but at least it works.  Here it is:

1. Let the voided payment stand -- the "void" marks the payment as unpaid in Bill.com (and that's probably why they do it in the first place)

2. Set up a "Bill.com A/P Wash Account" -- this can be set up as a sub-account of Accounts Payable (this only needs to be done the first time)

3. Create a new Adjusting Journal Entry to REVERSE THE VOID on the original date of the voided payment

4. Create another new Adjusting JE to "REVERSE THE REVERSAL" on the date of the actual Refund

Note that these 2 journal entries essentially cancel each other, while moving the reversal to the period in which it actually occurs.

5. Next, go to the Bill.com Money Out Clearing account's Bank Register and on the date of the original payment manually reconcile the "REVERSE THE VOID" item by marking it 'R" -  now the Not Ready to Reconcile error should clear

6. Now go ahead and reconcile and the universe should once again be in order

Thanks for the great level of detail of the work-around

My beef though isn't about the work around, I was actually able to figure out the work-around.  My beef is with Bill.com for the method in which they void a reconciled item in the first place.  It demonstrates a complete lack of knowledge about accounting.

Yeah, I have the same beef with them.  The whole thing is pretty pathetic.  I only just figured out the workaround after suffering from this problem for 3 years, so I figured I'd post it in the event that it might help others!

THIS IS FREAKING TERRIBLE TO ALL INVOLVED.  Stop the stupid work arounds and use the API to record a PROPER accounting transaction, this is an APPLICATION issue between Bill.com and QBO.  If Bill.com can't record a proper reversing entry or QBO can't enable them to do so, they shouldn't be partners that claim they work together.  QBO, fix yo stuff.  Bill.com, fix yo stuff.  Infuriating.

Hi, everyone.  We've found a workaround for this issue:

(1) Void the check in BILL.com but (this is important): uncheck the box to sync with accounting software so it doesn't sync

(2) Make a JE in your accounting system. We DR Money Out Clearing and CR the original account used to issue the payment, including the name and proper class (if using classes in QB)

(3) Reissue the payment.  We usually add "RE" in the invoice name for the reissue so we know it is a reissue.

Hope this works for you?