I paid a supplier forgetting that their bank account had been closed, I then paid invoice using others means, where to I record the amount that bounced back?

Hi beccollyer-gmail,

Thanks for posting in the Community!

If the returned payment is showing and downloaded in the For review tab of QuickBooks Online, you can categorise and allocate it to Accounts Payable account. That way, it will offset the amount you have made for the supplier payment. Here's how:

1. Go to the Transactions tab or Banking.
2. Click on the bank account, and click on For Review.
3. Click on the transaction, and under Category select Accounts Payable account.
4. Fill out other fields like name and GST.
5. Click on Add if you did not record any transactions in QuickBooks or Match it to the transaction recorded for the refund.

Then, go to + New, and select Bill Payment to link the transaction categorised to the original bill.

1. Click on the + New button.
2. Click on Expense or Bill Payment.
3. Under Payee choose the Supplier name and tick box for the supplier credit and the deposit.
4. The balance should be 0 as they will cancel each other out.
5. Select Save and Close.

Let's go back to the supplier details to see if there is no open balance showing. You can also check this link to learn more about Handle supplier refunds and credits in QuickBooks Online.

Please let me know if you have any additional questions. I'm always willing to assist.