We mad a wire transfer for $25k that posted to the bank. That transaction was then added to QB using the "update" feature. Then we used the reconciliation feature for that account to record it to a vendor directly as an expense. Several days later, that wire was returned and posted to the bank. We again, added that transaction to QB using the "update" feature.
Now, we'd like to add the transaction so that it is 1) cleared from the reconciliation, 2) added as a credit to the vendor's balance, 3) and show correctly on the P&L
After watching videos, reading posts, and trying different methods for over an hour... nothing has worked.
How do you we do this?
Welcome to the Community, ptownbro985.
I'd be glad to provide you some insights about entering a refunded wire transfer in QuickBooks Online. We'll need to create a Bank Deposit and post the amount to your Accounts Payable it will raise the balance for that vendor back up by the amount that was returned. The steps are super easy.
Once done, it will show that the vendor still owes the amount.
I have here an article that contains information about reconciling an account in QBO for your guide: Reconcile an account in QuickBooks Online
Tag me directly if there's anything else I can do to help.
Thanks for the reply, but that didn't work in any way.
1. The banking transaction is still in bank account's "For Review" listing to reconcile
2. The P&L is not correct. It does not apply a credit to remove the original wire that directly expensed.
3. The vendor now shows that $25k is due which not correct.
The desired result should be
1. The banking transaction should be cleared from the "For Review" listing.
2. The P&L should be credited by $25k
3. The vendor should not show a balance due.
I'd like to jump in and help you record the returned money.
When you categorize the returned wire transfer, you'll want to select the expense account you used when you recorded the expense transaction. This will reduce the balance of the expense account in your P&L, and this will not affect anything to the vendor's profile since this is a cash-in entry.
Please give it a try and let me know how it works for you.
This removes it from the banking reconciliation and the P&L is correct. However, as you said the vendor detail is not changing, which is incorrect. The vendor detail needs to change as well to show that the original expense amount is not truly there.
How do we do this correctly so that all items are achieved?
Allow me to join this thread, @ptownbro985.
To fix the vendor's detail, you can create Credit Card Credit in QuickBooks Online. Then, you can match this to your bank transaction.
Here are the steps:
You can visit our help article to learn more about organizing your QuickBooks account. This contains banking, reports, and accounting topics that are surely help's your daily exploration.
Get back to me if there's anything else I can do to help.