How does one delete a failed direct deposit payment to a contractor? They gave me a bad bank account number.

Thanks for posting in the Community, @sb-askwoody-com.

In QuickBooks Online (QBO), you can void the failed contractor direct deposit (DD) from the bank register instead of deleting it. This can be done by going to the Expenses menu.

Here's how to do it:

1. In QBO, go to the Expenses menu at the left pane to get to the Expenses page.
2. Locate the DD transaction to be voided.
3. Click the View/Edit drop-down arrow under the Action column.
4. Choose Void, then hit Yes to confirm.

Once done, it'll show as voided, and the amount will change to $0.00. Also, QBO has an option that allows you to find or update your DD funding time. Check out this article for more information: View or change your direct deposit funding time.

Reach out to me in the comment section below if you have any other questions or concerns. I'll be here to help. Have a good one!

Hi sb-askwoody-com,

The Void option will not work for direct deposit payments to contractors. I would recommend contacting our Support team. That way, they can assist with your payment. They have a way to do this on their end.

We're just right here if you have more questions.

You do need to make the mentioned revering journal entry to correct your expense and bank account. Unfortunately the reversal does not show up on the contractor payment list or the vendor transactions. It does however adjust the 1099 amount. If you run a 1099 Transaction Detail Report you will see it there. When you issue a 1099 to that vendor it should reflect the correct amount. Hope that helps.