Recording an overpayment to a supplier and the subsequent refund

Hey there, @Anne11_2-Louise .

I'd be happy to assist you in recording the overpayment you've made and the refund from your supplier in QuickBooks Online (QBO).

After paying your bills with the actual amount, this will create a -£140.64 credit balance to your supplier's account. Since they have already refunded you for the overpayment, we can create a bank deposit to record it in QuickBooks. Here's how:

1. Select + New and click Bank deposit.
2. In the Account dropdown menu, choose the account where you got the refund.
3. In the Add funds to this deposit section, fill out the following fields:
   • Received from: Select the vendor who gave you a refund.
   • Account: Choose Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the supplier credit.
   • Payment method: Enter the method your vendor used to refund you.
   • Amount: Enter the amount of your refund.
4. Click Save and close.

Once done, use Pay Bills to connect the bank deposit to the vendor credit. This final step is to keep your vendor expenses accurate.

1. Click + New.
2. Select Pay bills.
3. Choose the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be £0.00.
4. Click Save and close.

For additional reference, you can check out this article: Enter supplier credits and refunds in QuickBooks.

At the end of the month, you can proceed to reconcile your account. This is to keep track of your business's real-life transactions and detect any possible errors accordingly. For a step-by-step guide, kindly refer to this article: Reconcile an account in QuickBooks Online. 

Please let me know if you have other concerns aside from recording overpayments and supplier refunds in QBO. I'm here to help. Take care always.