Enter a Refunded Wire Transfer

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.

Here's how:

1. Click on the + New button and choose Bank Deposit.
2. Select the correct bank account.
3. In the Add funds to this deposit table, enter the vendor’s name.
4. In the Account section, make sure to select Accounts Payable.
5. Fill in the necessary fields.
6. Enter the amount in the Amount section.
7. Click on Save and close.

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.

Hi ptownbro985,

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:

1. Click the +New icon and choose Credit Card Credit under Vendors.
2. Select the vendor from the Payee dropdown list.
3. Select the credit card from the Bank/Credit account dropdown list.
4. Use the Account details section when returning a purchased “Expense” like plane tickets.
   -This entry should match the original entry when you created the expense to balance properly.
5. Click to Save and close.

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.