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patrick3
January 25, 2021
Solved

Reissue lost Bill Pay check for last year

  • January 25, 2021
  • 2 replies
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I sent a payment to a vendor through my bank's online Bill Pay system, but he didn't get it.  So I had the bank stop payment on that check and credit my account.  Then I wrote another check to him.

 

I've searched and learned that I need to enter the new check into QuickBooksOnline and create a bank deposit on the same day to offset the new payment.

 

The problem is that the first payment was sent in December of last year and was immediately deducted from my account since it was sent by the bank.  The refund and new check were done in January of this year.  So I'm not sure how to handle this properly for 1099 preparation.  QBO is showing that I made a large payment to him in December, but he really didn't get paid until January.  

 

How do I handle this situation in QBO to get it correct?

Best answer by Mark_R

I've got your back on recording a refund from the bill payment that was processed last year, @patrick3.

 

Firstly, I want to appreciate the efforts you've taken to learn how to handle this situation. To sort it out, you'll have to enter a vendor credit instead of writing a check. And create a vendor refund using a bank deposit with the last year's date. Then, link them together.

 

Before we start, please be guided that recording this transaction may affect your QuickBooks' current data. Thus, seeking help from your accountant is recommended. Below are the steps to complete the process:

 

Step 1: Enter a vendor credit. This makes sure the credit hits the expense account you use for this vendor.

 

  1. Click the + New button, then select Vendor credit.
  2. Select the vendor from the drop-down.
  3. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
  4. Hit Save and close.

 

Step 2: Deposit the money you got from the refund.

 

  1. Click the + New button, then select Bank Deposit.
  2. Select the bank account where you got the refund.
  3. In the Add funds to this deposit section, fill out the following fields.
    1. Received from: Select the vendor who gave you a refund.
    2. Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
    3. Payment method: Enter the method your vendor used to refund you.
    4. Amount: Enter the amount of your refund.
  4. Select Save and close.

 

Step 3: Use Pay Bills to connect the bank deposit to the vendor credit. This last step is to keep your vendor expenses accurate.

 

  1. Click the + New button, then select Pay Bills.
  2. Select 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.
  3. Select Save and close.

 

The steps above will lead you to the right track. I'm also adding these articles to help guide you in preparing your 1099 in QuickBooks Online:

 

 

Should you need any assistance managing refunds in QuickBooks Online, I'm available here to help any time!

2 replies

M
Mark_RAnswer
January 25, 2021

I've got your back on recording a refund from the bill payment that was processed last year, @patrick3.

 

Firstly, I want to appreciate the efforts you've taken to learn how to handle this situation. To sort it out, you'll have to enter a vendor credit instead of writing a check. And create a vendor refund using a bank deposit with the last year's date. Then, link them together.

 

Before we start, please be guided that recording this transaction may affect your QuickBooks' current data. Thus, seeking help from your accountant is recommended. Below are the steps to complete the process:

 

Step 1: Enter a vendor credit. This makes sure the credit hits the expense account you use for this vendor.

 

  1. Click the + New button, then select Vendor credit.
  2. Select the vendor from the drop-down.
  3. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
  4. Hit Save and close.

 

Step 2: Deposit the money you got from the refund.

 

  1. Click the + New button, then select Bank Deposit.
  2. Select the bank account where you got the refund.
  3. In the Add funds to this deposit section, fill out the following fields.
    1. Received from: Select the vendor who gave you a refund.
    2. Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
    3. Payment method: Enter the method your vendor used to refund you.
    4. Amount: Enter the amount of your refund.
  4. Select Save and close.

 

Step 3: Use Pay Bills to connect the bank deposit to the vendor credit. This last step is to keep your vendor expenses accurate.

 

  1. Click the + New button, then select Pay Bills.
  2. Select 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.
  3. Select Save and close.

 

The steps above will lead you to the right track. I'm also adding these articles to help guide you in preparing your 1099 in QuickBooks Online:

 

 

Should you need any assistance managing refunds in QuickBooks Online, I'm available here to help any time!

    P
    patrick3Author
    January 26, 2021

    Thank you so much!

      W
      Whoadeb
      December 12, 2023

      Hello,

      I tried this in QBDT and it worked but when I try to reconcile my bank account I'm off by the exact amount of the credit for the bill payment check the bank issued.  What did I do wrong or did I miss a step?

       

      Thanks in advance

      ~D

       

      S
      ShyMae
      December 12, 2023

      Hi there, Whoadeb.
       

      To assist you more effectively, I'd like to ask what steps you followed and if possible, could you please share a screenshot? This will help me understand the situation better and explore potential solutions that can resolve your concerns.
       

      Please let me know through the reply button. I'd be more than happy to assist you. I appreciate your cooperation. 

        W
        Whoadeb
        December 12, 2023

        Sure thing.

         

        I posted a deposit from the bank for the lost bill pay check as received from the vendor, from the A/P account.

        I issued a vendor credit.

        I went to pay bills window and the vendor credit and deposit offset each other.

        Then when reconciling the bank account, it is over by the amount of the deposit.

         

         

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