Duplicate payment to a supplier - supplier will use as credit - how do we record it and what do we match the bank transaction to?

Hi there, @alect. I'm here to lend a hand in managing your transactions. 

You'll need first to create a supplier credit to record the supplier overpayment. Here's how:

1. In the left menu, click the + New button.
2. Select Supplier Credit.
3. In the Supplier field, select the appropriate supplier name and enter the following necessary fields.
   • Enter the Date.
   • Amount.
   • Account: the account used here is typically the original expense account on the original bill.
4. Select Save and close.

After that, make a bank deposit to enter the supplier refund.

1. In the left menu, click the + New button.
2. Select Bank Deposit.
3. Go to Add funds to this deposit section.
4. In the Received from field, select or enter the supplier name 
5. Choose Creditors (Accounts Payable) account in the Account drop-down list.
6. Enter the Supplier refund amount.
7. Click the Save and close button.

And lastly, link the Supplier Refund Deposit to the Supplier Credit. 

1. In the left menu, click the + New button.
2. Select Expense or Cheque.
3. Choose the supplier name in the Payee dropdown,
4. Leave the Ref/Cheque no., Payment date, Amount and Memo fields blank.
5. In the Add to Expense or Add to Cheque section that appears on the right-hand side, select Add for the outstanding supplier credit and the deposit. 
6. Click the Save and close button.

For more details about this process, see this article: How do I handle supplier credits and refunds?.

Once done, you can now match the Bank Deposit to the money received in the For Review tab on the Banking page. To give you more insights about categorising and matching your transactions, please see this link: Categorise and match online bank transactions in QuickBooks Online.

For future help, you can visit this resource: Reconcile an account in QuickBooks Online.

Leave a comment below if you have any other questions, I'm always here available to help. Have a great day ahead!