Hi, A company recently tried to take payment for a large sum, but I did not have enough to cover it. It looks like the took it and gave it back twice. How do I record it?

Hello there, @pdrcustomstorage.

I understand you're dealing with a situation where a payment was attempted but subsequently reversed. Let’s simplify how to record this so it accurately reflects your financial situation.

Since no actual funds were transferred, we can record this using a journal entry to reflect the temporary transaction without creating confusion in your records. Here’s how to do that:

1. Click the + New icon and select Journal Entry.
2. Set the Date to when the transaction occurred.
3. In the Account column, choose your bank account, and enter the amount in the Debit column (this reflects the amount deducted temporarily).
4. In the next line, choose Accounts Payable, enter the same amount in the Credit column, and select the supplier's name in the Name field.
5. Add any additional details, if necessary, and select Save.

This will help you show that the payment was initiated and quickly reversed, effectively recording the transaction without any net gain or loss.

After that, re-open the bill associated with that cheque and link this to the journal entry. I'll show you how:

1. Go to the Expenses menu and select Suppliers.
2. Select the suppliers associated with the entry and locate the bounced check in the transaction list.
3. Uncheck the checkbox for the bill, then select the one for the journal entry.
4. Confirm you want to make the changes, then select Save. 

Lastly, record the bank fees using the following steps:

1. Click the + New icon and select Expenses.
2. Choose the Payee for the fee.
3. In the Payment Account dropdown, select the account from which the fee was deducted.
4. Optionally, you can enter the fee in the Ref no. field for clarity.
5. In the Category column, select Bank Charges and enter the fee amount.
6. Hit Save.

Afterward, record the bill payment when your bank account has enough funds to cover the cheque payment.

Moreover, learn to run expense reports to see how much you're paying each supplier on a monthly basis.

Keep me posted if you have additional questions about recording transactions, @pdrcustomstorage. I'm just a post away to help you. Take care!