Bank Wire Rejection

Hi there, Grimayoj.

I can share the process of recording a bank wire rejection in QuickBooks Online (QBO).

The returned money can be recorded as a bank deposit in your bank account with the same category to reverse the posting on that account. Then, add another line for the charge or processing fee to reduce the total deposit.

Here's how to do it:

1. In QBO, go to the + New button at the top left.
2. Select Bank Deposit.
3. In the Account drop-down, choose the account where you want to deposit the money.
4. Go to the Add funds to this deposit section and select the vendor who gave you the refund. Also, add the wire fee charged (the amount is in minus to negate the total returned payments).
5. Choose Accounts Payable from the Accounts column.
6. Enter the amount of your refund.
7. Hit Save and close.

They remain open to the vendor profile and can be applied to future bills and expenses accidentally. So, our next step is to link and close them through a bill payment transaction.

To do is, you can create an expense and add the deposit and the first expense transaction. This will turn into a bill payment (check) when saved. You may add a memo so you can easily recognize it in the future.

Here's how:

1. Go back to the + New option, then select Expense.
2. Choose the vendor's name in the Payee drop-down.
3. In the Add to Expense section at the right, click the Add option to the deposit and the first expense transaction.
4. Once done, tick Save and close.

To know more about managing wire transfers, bill payments and vendor refunds, consider checking out these articles:

• How to record a wire transfer in QuickBooks Online.
• Enter vendor credits and refunds in QuickBooks Online.
• Enter and manage bills and bill payments in QuickBooks Online.

You can also reconcile your account at the end of the month to ensure your accounts are balanced and accurate. You can refer to this article for further guidance: Reconcile an account in QuickBooks Online.

For more tips and other resources you can use in the future, I recommend visiting our website: Self-help articles.

Please let me know if you have more questions about this or anything else. I'll be happy to answer them. Take care.

FritzF

When you refer to the vendor in the below instruction do you mean the bank that rejected the money or the vendor who I was attempting to send money to?

Go to the Add funds to this deposit section and select the "vendor" who gave you the refund

THANKS

Joining to here to answer your follow-up questions about recording refunds, Grimayoj.

If you want to include this transaction in the vendor's profile, select the name of the payee the original payment was intended for. This way, the refund will be part of the list when running transaction reports.  

However, I would still recommend reaching out to your accountant for additional advice on this matter.

Let me also share these articles for additional guidance when managing vendors in QBO: 

• Print a Customer or Vendor Register
• Run a Report With Vendor Totals

Don't hesitate to ask follow-up questions if you still need more help when recording vendor-related transactions. The Community is always here if you need anything else. 

When I do the second part of the transaction.. I click NEW/EXPENSE.. I dont have an "add to expense" option? Below is the task that I was sent.

Thanks 

Here's how:

1. Go back to the + New option, then select Expense.
2. Choose the vendor's name in the Payee drop-down.
3. In the Add to Expense section at the right, click the Add option to the deposit and the first expense transaction.
4. Once done, tick Save and close.

Thanks for following up with us, @Grimayoj. 

Please know that you will only see the Add to Expense side menu once you've created the bank deposit as my colleague mentioned above. To help with this, I've included the same steps shared above and included some screenshots for your reference. 

1. Go to the + New button at the top left.
2. Select Bank Deposit.
   • 
3. In the Account drop-down, choose the account where you want to deposit the money.
4. Go to the Add funds to this deposit section and select the vendor who gave you the refund. Also, add the wire fee charged (the amount is in minus to negate the total returned payments).
5. Choose Accounts Payable from the Accounts column.
6. Enter the amount of your refund.
   • 
7. Hit Save and close.

Now let's create the expense. Here's how: 

1. Go back to the + New option, then select Expense.
   • 
2. Choose the vendor's name in the Payee drop-down.
3. In the Add to Expense section at the right, click the Add option to the deposit and the first expense transaction (please note that this menu will automatically pop up once you've selected the same vendor as the bank deposit).
   • 
4. Once done, tick Save and close.

That should do the trick. However, if you've followed these steps exactly and you're still experiencing this issue, you may have some issues with your browser. Web browsers collect cache to save time when loading repetitive data and images. Over time these files become outdated and corrupted, causing issues like the one with your side menu not showing for adding to expenses. I recommend clearing your cache to clear the damage. 

Please let me know how it goes. I'm here if you have any additional questions or concerns. Take care! 

This fantastic instructions however one issue.. The Add to Expense options doesnt show up even after clearing cache..

Using the incognito didnt work... Was hoping that would fix it..

I figured out what I was doing... 

The original Vendor bill had a payment already so I was trying to do an expense that already had a bill and bill payment.. I deleted the payment.. Then did the deposit and the expense and it worked..

Thank you. So I have accounted for the wire sent back to my account. How do I now categorize the 2nd wire that I sent to the vendor if the original payment was already expensed?

Managing your categories is crucial for the recording process, jbrazil1. I'll provide you with some tips to help streamline your workflow.

As this is a categorization process, I recommend consulting with an accountant if you have one. They can provide guidance on the categorization and help ensure you input the information into the correct fields. Alternatively, you can select the nearest category that aligns with the transaction.

Additionally, if you don't currently have an accountant, you can check this page for finding accountants in your area: Find an Accountant.

If you have other questions about categorizing your transactions, run reports, inventory concerns, or any other QuickBooks tasks, let me know by leaving a reply below, and I'll circle back to help you.