I have a bounced supplier payment that is showing as interest received in the bank - I need this to go against payment that actually bounced

Let’s record first the bounced supplier payment in your QuickBooks, accounts112.

You can do this by creating a journal entry. Here's how:

1. Click the plus icon at the top. 
2. Select Journal Entry under Other. 
3. Set the right dates. 
4. Debit the checking account (where the payment is coming from) for the bounced payment amount.
5. Credit the Creditors account for the bounced payment amount and enter the name of the supplier. 
6. Enter other necessary information. 
7. Select Save and close. 

Next is un-link the bill from the bill payment and link the journal entry 

1. Open the original bill payment check.
2. Unchecked the Bill under Outstanding Transactions and check the Journal entry. 

This will close the balance the journal entry then makes the bill open again. 

Once done, you can now use the interest in your bank to pay the open bill. 

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