How can I record a payment made to a supplier that has been returned by the bank as supplier account number was incorrect?

Let us guide you through the process of recording a returned supplier payment in QuickBooks Online (QBO), m-berg.

To record a payment returned by the bank due to an incorrect supplier account number in QuickBooks Online, you can enter the returned funds as a bank deposit using the same account originally used to pay the supplier. This ensures your bank and supplier balances remain accurate.

How to do it:

1. Go to the +New button.
2. Select Bank deposit.
   
   
3. In the Account field at the top, select the bank account where the returned funds were deposited.
   
   
4. In the Add funds to this deposit section: Enter the amount of the returned payment.
5. In the RECEIVED FROM field, select the supplier/vendor.
6. For the posting account, select the same expense or accounts payable account used when you originally paid the supplier.
7. You can add a description like “Returned payment due to incorrect supplier account.”
   
   
8. Once done, click Save and close.

This method posts the returned payment into your bank account and links it to the supplier’s account, keeping your books balanced.

Additionally, refer to this article for guidelines on recording a returned payment in QBO: Handle supplier refunds and credits in QuickBooks Online.

Furthermore, you can check out this comprehensive guide on how to reconcile your accounts in QBO. It helps ensure that your QuickBooks balances match your bank and credit card statements, making it easier to spot discrepancies and maintain clean financial records: Reconcile an account in QuickBooks Online.

If you need further assistance with managing supplier transactions, recording returned payments, or any other QBO tasks, please feel free to let us know in the comments. We'll prioritize providing you with detailed guidance to resolve your concerns, m-berg. Take care and stay safe!