Wire Transfer for a bill payment cleared the bank and then was returned, less fees

wringmaster · ‎February 13, 2019

I made a wire transfer for a bill payment that cleared the bank and then was credited back by the bank due to incorrect recipient info. So I need to initiate a new wire to pay the bill, which now shows paid in Quickbooks, plus I need to show the money came out of the bank, then got credited back, less fees that the bank charged. Also my amount actually paid to a vendor needs to show correctly in Quickbooks for tracking purposes. How do I enter this correctly in Quickbooks? Following is what the bank shows.

Bill Payment via Wire Transfer dated 2/8/19 $6232.80

Credit from bank dated 2/8/19 ($6207.80)

Bill Payment via Wire Transfer dated 2/13/19 $6232.80

Anonymous · ‎February 15, 2019

Welcome back, @wringmaster,

Allow me to chime in and add additional information about recording a replacement wire in QuickBooks Desktop.

We'll need to use a bank deposit to record a returned wire including the bank fees so you're able to match the amount in QuickBooks with what was cleared in your bank. Here's a step by step process to guide you:

Step 1: Create a Bank Deposit

Go to the Banking menu.
Choose Make Deposits.
In the Deposit to field, choose the account where you want to deposit the amount.
Update the deposit date.
On the From Account column, click Add new to add an Other Current Liability account.
Click Other Account Types radio button then select Other Current Liability.
Click Continue.
Enter the Account Name. (Example: Other Current Liability).
Click Save & Close.
Enter the amount 6232.80 in the Amount column.
Once done, let's add the bank fee on another line item. Click a new expense line item under the From Account column.
Click Add New.
Choose Expense then click Continue.
Enter the name of the expense. (Example: Bank Fee)
Click Save & Close.
On the Amount field, enter a negative amount for the bank fee.

That should give you the exact bank credit amount. Please see screenshot:

Once you're done, you can now pay out the Other Current Liability account again, to replace the returned payment. To do that, you can either run a check or create an expense to relieve the balance on the OCL account. Here's how:

Go to the Banking tab.
Choose Write Checks.
Enter the Bank Account, Date and the vendor.
Click the Expenses tab.
In the Account column, add the Other Current Liability.
Enter 6232.80 in the Amount column.
Click Save and Close.

That should get you on the right track, @wringmaster. Please let me know if there's anything you need help with. I'm here to help you anytime. Have a great day!

View solution in original post

AlcaeusF · ‎February 13, 2019

Hello there, wringmaster.

Welcome to the Community. It would be my pleasure to answer any questions you may have about the bill payment in QuickBooks Desktop.

You can create a bank deposit and use the Accounts Payable account for the payment. Since the first attempt got credited back with lesser fees, we can add another line for the expense in the deposit.

Here are the steps:

Click the Banking tab at the top menu bar.
Select Make Deposits.
Below Received From column, add the vendor name.
Below From Account, include Accounts Payable and add 6232.80.
Below From Account, include Expense account and add the difference amount (ex. 6232.80 - 6207.80 = 25).
Click Save & Close.

Please keep in touch with me here should you need any further assistance regarding the process above. The Community always has your back.

qbteachmt · ‎February 13, 2019

@AlcaeusF

Please learn from this input. It's not AP, again. There is no further entry for AP when there is a banking error.

@wringmaster

The Banking return is a deposit, to Other Current Liability = not yours to keep. The Split details in the Make Deposit screen are Other Current Liability, with No Name, and the Bank fee expense.

And your replacement Banking is paying out the Other Current Liability to the right name. It's not Expense, again. It's not Pay Bills, again. It's a Replacement Banking event. This is really critical for Proper Tax treatment. You don't have AP or Expense, twice, here.

It's just a Banking issue; don't make it worse.

Fix the original bookkeeping, as well; the original Payment, and if that was associated with a Bill, change them to the right name for reporting to be corrected.

wringmaster · ‎February 13, 2019

So how do I enter this in Quickbooks? step by step?

PreciousB · ‎February 13, 2019

Greetings wringmaster,

Thanks for the call out @qbteachmt.

Let me join this thread and help you enter this transaction in QuickBooks Desktop.

You can follow the steps that my colleague @AlcaeusF shared. Just change the Accounts Payable account into Other Current Liability.

Here's how:

Select Banking at the top.
Choose Make Deposits.
Leave the Received From column blank.
Under the From Account column, select Other Current Liability and enter 6232.80.
Below From Account, select the Bank Fee Expense account and add the difference amount.
Click Save & Close.

Let us know if you have other questions. We are always here to provide additional assistance if you need anything else. Have a good one.

wringmaster · ‎February 15, 2019

Thank you PreciousB for the breakdown. Could you also tell me step by step, how to enter the replacement wire in Quickbooks?

Anonymous · ‎February 15, 2019

Welcome back, @wringmaster,

Allow me to chime in and add additional information about recording a replacement wire in QuickBooks Desktop.

We'll need to use a bank deposit to record a returned wire including the bank fees so you're able to match the amount in QuickBooks with what was cleared in your bank. Here's a step by step process to guide you:

Step 1: Create a Bank Deposit

Go to the Banking menu.
Choose Make Deposits.
In the Deposit to field, choose the account where you want to deposit the amount.
Update the deposit date.
On the From Account column, click Add new to add an Other Current Liability account.
Click Other Account Types radio button then select Other Current Liability.
Click Continue.
Enter the Account Name. (Example: Other Current Liability).
Click Save & Close.
Enter the amount 6232.80 in the Amount column.
Once done, let's add the bank fee on another line item. Click a new expense line item under the From Account column.
Click Add New.
Choose Expense then click Continue.
Enter the name of the expense. (Example: Bank Fee)
Click Save & Close.
On the Amount field, enter a negative amount for the bank fee.

That should give you the exact bank credit amount. Please see screenshot:

Once you're done, you can now pay out the Other Current Liability account again, to replace the returned payment. To do that, you can either run a check or create an expense to relieve the balance on the OCL account. Here's how:

Go to the Banking tab.
Choose Write Checks.
Enter the Bank Account, Date and the vendor.
Click the Expenses tab.
In the Account column, add the Other Current Liability.
Enter 6232.80 in the Amount column.
Click Save and Close.

That should get you on the right track, @wringmaster. Please let me know if there's anything you need help with. I'm here to help you anytime. Have a great day!

Gee4 · ‎March 03, 2020

Hi All,

I have the same issue. However, I use QBO. What will the the process in QB Online?

Thank you!

Michael K · ‎March 03, 2020

Hey there, @Gee4. Welcome to the thread.

Happy to guide you through the process. It's very similar in method to the Desktop steps provided above. Check it out:

Go to the +New, then Bank Deposit.
In the Account field, choose the account where you want to deposit the amount.
Update the deposit date.
On the Account column, click Add new to add an Other Current Liability account.
Choose Other Current Liabilities in the Account Type drop-down then select Other Current Liabilities in the Detail Type drop-down.
Enter the Account Name. (Example: Other Current Liability).
Click Save and Close.
Enter the amount of the deposit in the Amount column.
Once done, let's add the bank fee on another line item. Click a new expense line item under the Account column.
Click Add New.
Choose Expense then click Continue.
Enter the name of the expense. (Example: Bank Fee)
Click Save & Close.
On the Amount field, enter a negative amount for the bank fee.

I've included a screenshot below of how it should appear:

After you've created the deposit, you can replace the returned wire by following these steps:

Go to + New, then Check.
Choose the Bank Account, Date and the Payee.
In the Account column on your first line item, add the Other Current Liability account we created earlier.
Enter the amount in the Amount column.
Click Save and Close.

That's it! Let me know if you have any other questions by hitting the Reply button below. I'll be here for you.

Laura1980 · ‎May 05, 2020

For tracking purposes how can I have that in the vendor center , so I can see it from there.

I mean once the return come and i deposit it and pay it again a second time . How can I make that deposit show or pop up in the vendor center .....so I know that when I enter in that specific vendor I have x invoice paid and y amount returned and than x amount paid again . (but want to see the deposit being shown in vendor center /vendor )

Would that be possible , please .

Thank you

AileneA · ‎May 05, 2020

Hi there, @Laura1980.

Thank you for reaching out to the Community. You can use the Reminders feature in QuickBooks Desktop. It will help you keep track of the tasks and important alerts. I recommend placing a reminder in your personal calendar to be notified of the deposit paid for the specific vendors. Let me show you how:

On the right upper corner click the Clock icon.
Click the + sign on the right corner.
Enter the information needed and click OK once done.

Once done, this will set up an reminders to track the vendors the deposit to the vendors.

For you future reference you can check out this article: How to customize and manage invoice payment reminders.

Let me know if there's anything I can help you with your invoice reminder. I'm always around here in the Community whenever you need assistance. Have a great day! Take care.

Laura1980 · ‎May 05, 2020

Thank you for your reply Ailena,

But what I am actually aiming is : Can I see that deposit in the vendor center/Vendor / where I see the list of all the bills and bill pay and credits / is there a why that in this list I might be able to see the deposit of the returned wire?

Thank you

RCV · ‎May 05, 2020

Thanks for coming back, Laura1980.

The list of transactions that will be posted in the Vendor Center are Balance Details, All Payments Issued, Purchase Orders, Item Receipts, Bills, Bill Payments, Checks, Credit Card Activities, and Sales Tax Payments.

However, we can run the Transaction List to generate the deposits and bill credits.

Here's how:

Go to Reports on the top menu.
Choose Vendors &Payables.
Tick the Transaction List by Vendor.
Click the Customize Report tab.
Select Filters.
Enter Transaction Type in the Choose Filter field.
Tap the Transaction Type drop-down and tap Multiple Transactions.
Choose Deposit and Bill Credit and then OK.
Press OK.

For more details about customizing vendor reports, check out this article: https://quickbooks.intuit.com/learn-support/en-us/customize-reports/customize-vendor-reports/00/2018....

I've got a link here where you can find articles about managing your vendor transactions: Enter expenses, pay bills, and write checks.

I'm just one click away if you need a hand with memorizing transactions or any QuickBooks related. I'll be here to ensure your success. Keep safe and healthy.

Laura1980 · ‎May 05, 2020

Thank you so much that is very helpful.

RCV · ‎May 05, 2020

It's great to hear it works for you, Laura1980.

Feel free to post your future concern here so that I can help you. We also have All-Stars and other users who hang out in the Community and can provide the answer.

For more details about managing vendor credits and deposits, check out these articles:

The Community will always have your back. I look forward to hearing from you again. Take care always.

Topics

Training

Community

Resources

Wire Transfer for a bill payment cleared the bank and then was returned, less fees