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Frequent Contributor *

Wire Transfer returned and Bill amount changed

Hello,

     How would I record on QBO the following? I payed my vendor $3000 via Wire transfer.  The total paid in that transaction was $50 for my bank fee plus the $3000 for my vendor Bill. Transaction cleared on my end but a few days later it returned because the recipient give me  wrong banking information, he agreed to receive of the $3000 bill, $2950 to cover the $50 that I paid to my bank because of him providing the wrong information. Can I just exclude the first wire transfer and return of money since they are the same amount and just make an expense for the Bank wire fee ($50) ? And just create a expense for the $2950 now owed to the vendor?? If I do need to record everything described above how would I do it? I don't have bank feeds linked, Thanks in advance

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Best answer 06-26-2019

Accepted Solutions
QuickBooks Team

Re: Wire Transfer returned and Bill amount changed

Hey there, @Acomp.

 

You’ll need to edit the bill payment and select the deposit you recorded. Let me provide you with the steps.

 

To record the vendor refund, you’ll need to record a bank deposit using your Accounts Payable. Then, you can unlink the bill to the payment and replace it with the deposit.

 

I have a screenshot below on how to record the bank deposit. 

 

 

Since my colleague has already given the steps in creating the bank deposit, you can follow the steps below to unlink the bill:

  1. Open the bill payment.
  2. Select the deposit from the Outstanding Transactions section.
  3. Untick the bill.
  4. Click on Save and Close.

 

Once done, you’ll now have an open bill, noting that you’ve already refunded your vendor.

 

If you want to learn more "How do I" steps in QuickBooks, you can visit our Help Articles page. 

 

You can let me know in your comment below if you have any other questions. I’ll be sure to get back to you.

5 Comments
QuickBooks Team

Re: Wire Transfer returned and Bill amount changed

Let me help you with this, @Acomp.

 

The steps outlined below will help you record your bill payment in QuickBooks Online.

 

I suggest following the transactions from your bank statement even if your bank isn't connected on your bank feeds. This is for you to have accurate amounts when you reconcile your bank.

 

Here's how:

Step 1: Create an expense and use the Accounts Payable on the account category. This is for your first payment. 
expense1.PNG

Step 2: Create another expense for the wire transfer fee.
expense2.PNG

Step 3: Create another payment under Accounts Payable, then enter a negative amount for the fee.
secondpayment.PNG

Step 4: Create a bank deposit for wire transfer returned.
bankdeposit.PNG

Step 4: Pay your bills to link the bank deposit, expenses, and bill. This will zero out your transactions.
paybills.PNG

 

Now, you have a zero payable balance to the vendor's account. Please see the attached screenshot below.

vendoraccount.PNG

Once done, you can then check your register and compare it with your bank statement to see the actual transactions.

bankregister.PNG

 

If you need to reconcile your bank, check this out for the detailed steps: How to Reconcile an Account in QuickBooks Online.

 

Should you need assistance with the solution above, please let me know. I'm always around whenever you need help.

Frequent Contributor *

Re: Wire Transfer returned and Bill amount changed

Thanks for your response @MaryLandT,

I may not be asking the right question because Im still a bit confused, on step #2 why do i have to make the transaction fee under the vendor "Future Energy" if this first $50 is what my bank is charging me to make  the make the $3000 WT to my vendor? Wouldnt my bank be the payee in step number 2? In stead of the vendor?

After the $3000 was refunded to my bank the vendor issued me a new invoice for the same transaction this time just for $2950 (he wanted to pay me back for giving me the wrong information for the first WT)  should I just make an expense for the new amount $2950? if so I still need to record the first transaction that went wrong, I hope I'm not making this to confusing, thanks again in advance.

QuickBooks Team

Re: Wire Transfer returned and Bill amount changed

Let me clear this out for you, @Acomp.

 

You can create an expense transaction without selecting a payee. As long as you're entering the transaction amount and bank fee, then it's good to go.

 

Another suggestion you can try is the steps below.

 

We'll have to record first the returned amount from the bank. That way, both the money in the Vendor Center and in your financial institution are the same.

  1. Enter a bill transaction with $3000 amount.
  2. Record the $3000 payment.
  3. Create a $3000 vendor credit for the returned amount from the bank.
  4. Make a $3000 deposit and use the Accounts Payable account.

That should result to linking of the $3000 vendor credit and deposit on the Bill Payment window. Eventually, this will zero out the  vendor balance.
1.PNG 2.PNG

 

Next, let's move to the new transaction:

  1. Create an expense with $2950.
  2. Make a vendor credit of $50.

That should guide you with the process, @Acomp. For additional reference, check out the following links:

Let me know the results or if you have follow-up questions. I'm still here to help you more. 

Frequent Contributor *

Re: Wire Transfer returned and Bill amount changed

This is helping very much but I still have some questions maybe I need to go trough some step by step guidance to be able to fully understand the process. I would like to know in general basis how to Record a vendor refund in QuickBooks online for an already pay bill supposing that I will not be making future transactions with this vendor?The bill was paid electronically and the refund as well,

thanks for your assistance.

QuickBooks Team

Re: Wire Transfer returned and Bill amount changed

Hey there, @Acomp.

 

You’ll need to edit the bill payment and select the deposit you recorded. Let me provide you with the steps.

 

To record the vendor refund, you’ll need to record a bank deposit using your Accounts Payable. Then, you can unlink the bill to the payment and replace it with the deposit.

 

I have a screenshot below on how to record the bank deposit. 

 

 

Since my colleague has already given the steps in creating the bank deposit, you can follow the steps below to unlink the bill:

  1. Open the bill payment.
  2. Select the deposit from the Outstanding Transactions section.
  3. Untick the bill.
  4. Click on Save and Close.

 

Once done, you’ll now have an open bill, noting that you’ve already refunded your vendor.

 

If you want to learn more "How do I" steps in QuickBooks, you can visit our Help Articles page. 

 

You can let me know in your comment below if you have any other questions. I’ll be sure to get back to you.

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