We have made online payment to our vednor. It was bounced back due to insufficient funds. How to record?

Hi, thanks for reaching out. I understand, bank page it will have 2 transactions. One for making the payment and other for bouncing back. You may have to exclude both the transactions considering no payments made. Else, you need to select same account 'Accounts Payable' account for for both the transactions when you categorize.