Question
We made an eTransfer to pay a supplier. However, the supplier failed to receive our payment. So our bank returns/deposits the amount in our bank. How do you record this?
My focus is on the bank statement (and of course impacting the bank reconciliation). We can see on our bank statement that $800 has left our account. Then, when the transfer failed, it debited our bank account. How do I account for this $800 put into our bank account? Do i create a deposit? But its not a deposit? this $800 must be recorded somehow, right? and done so without impacting the following payment (by cheque this time).