Reconcile

EXEMPLAR2 · ‎June 14, 2024

Here's what's going on.

I tried to pay a vendor for the first time.
I sent it with the wrong bank information, I only knew that because the vendor reached out saying he didn't get paid. Then I made a reversal.

Initially, the bank took out $270(showing as a debit on the bank statement) for the payment I was trying to make for a bill. Later the bank only returned $262(showing as a deposit on the bank statement) instead of the original $270. I think they charged a reversal fee but that doesn't show on the bank statement.

Now my vendor got paid a different amount on the next try because another bill is due and we both agreed to just combine the initial bill I was trying to pay for $279 and pay him $451.80 including the new bill. The bill for $270 doesn't exist in QBO anymore only the $451.80.

I was able to reconcile the bill for $451.80.

My dilemma now is I don't know how to record the $270 that was posted on the bank feeds but wasn't really received by the intended recipient which was later reversed by the bank only for $262.

Please help me how to record this. I already tried to record the $270 as payment to the vendor so can match the bank feed and the $262 as vendor credit but it creates a $262 overdue amount in the summary under the vendor when you open his transaction list and the $8 shows up as an open balance.

Please if any of you have an idea how to record this in QB to match my

Aldren18 · ‎June 14, 2024

I appreciate the details, EXEMPLAR2. I'm eager to take this opportunity to help you record the reversed vendor amount and the bank charge in QuickBooks Online (QBO).

We can match the downloaded $270 money-out transaction in the bank feeds to the original bill payment you've issued. Instead of using a vendor credit, create a bank deposit to account for the returned amount and reversal fee.

I'll show you how:

Select + New, then choose Bank Deposit.
Go to the Add funds to this deposit section.
Enter positive $270 for the amount returned and choose Accounts Payable as the Category/Account column.
Select the name of the vendor from the Received column.
Enter the negative $8 for the reversal fee on the next line.
Select the appropriate category you use for tracking bank fees.
Hit Save and close.

Next, match the $262 money-in transaction from the bank feeds to the created bank deposit. Once done, use the Pay Bills feature to link the bank deposit and the original bill payment.

For detailed steps, here's how:

Select + New, then choose Pay Bills.
Click the deposit you've created. The original payment will be automatically applied as credit.
Hit Save and close.

For more details, you can check this article: What to do if your check bounces and your bank account has insufficient funds in QuickBooks Online.

In addition, I have a set of articles you can use to organize your transactions and reconcile your account. By doing this, you will classify your transactions correctly and prevent any discrepancies in your books:

This thread is always open if you have other matters to discuss. If you require help recording and reconciling your transactions in QBO, get back to me in this conversation by clicking the Reply button. I want to ensure that all of your concerns are taken care of.

View solution in original post

Aldren18 · ‎June 14, 2024

I appreciate the details, EXEMPLAR2. I'm eager to take this opportunity to help you record the reversed vendor amount and the bank charge in QuickBooks Online (QBO).

We can match the downloaded $270 money-out transaction in the bank feeds to the original bill payment you've issued. Instead of using a vendor credit, create a bank deposit to account for the returned amount and reversal fee.

I'll show you how:

Select + New, then choose Bank Deposit.
Go to the Add funds to this deposit section.
Enter positive $270 for the amount returned and choose Accounts Payable as the Category/Account column.
Select the name of the vendor from the Received column.
Enter the negative $8 for the reversal fee on the next line.
Select the appropriate category you use for tracking bank fees.
Hit Save and close.

Next, match the $262 money-in transaction from the bank feeds to the created bank deposit. Once done, use the Pay Bills feature to link the bank deposit and the original bill payment.

For detailed steps, here's how:

Select + New, then choose Pay Bills.
Click the deposit you've created. The original payment will be automatically applied as credit.
Hit Save and close.

For more details, you can check this article: What to do if your check bounces and your bank account has insufficient funds in QuickBooks Online.

In addition, I have a set of articles you can use to organize your transactions and reconcile your account. By doing this, you will classify your transactions correctly and prevent any discrepancies in your books:

This thread is always open if you have other matters to discuss. If you require help recording and reconciling your transactions in QBO, get back to me in this conversation by clicking the Reply button. I want to ensure that all of your concerns are taken care of.

EXEMPLAR2 · ‎June 15, 2024

Thank you! This has the best result so far.
The bank register looks good and the summary of the vendor shows 0 in both open balance and overdue payment.

The only thing that's bothering me is the total amount at the bottom of all transactions which says -$540.

EXEMPLAR2 · ‎June 15, 2024

This is the best answer that I came across for this problem so far.

Everything looks good from the bank register to the vendor summary that shows 0 open balance and overdue payment.

The only thing left that bothers me is the $540 at the bottom of all transactions under the vendor transaction list (attached).

Can this be helped?

JuliaMikkaelaQ · ‎June 15, 2024

Thanks for getting back to us here in the Community, EXEMPLAR2. I'm here to address and explain why there's a -540 at the bottom of all transactions under the vendor transaction list.

First of all, it's good to hear that the steps provided by my colleague, jAldrenA, worked and resolved your concern about recording the returned amount and reversal fee to your vendor. Please know that your concerns are our utmost priority, and we'll do everything we can to ensure you receive the support needed.

To answer your query, QuickBooks will automatically calculate the total sum of all transactions shown on the Transaction List. With that, you don't have to worry about this, as it won't affect the balance of your vendor.

You might also want to learn specific ways to personalize your reports to fit your reporting preferences: Customize reports in QuickBooks Online.

Please feel welcome to send a reply here or create a new thread if there's any question that you'd like us to handle. We've always got your back. Have a wonderful day!

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