How to handle rejected payment made to supplier? I have already applied the payment to original bill. How should I reverse that and make payment again for that particular invoice?

Hi there krishna1015,

It's important that all your transactions be entered correctly so that your supplier balances are correct. QuickBooks Online is a great tool able to keep track of your expenses and sales so that you can view the profit of your company. I can provide some information about returned payments.

In order to enter the returned payment, I recommend following the steps outlined in scenario 3 of this article about bounced cheques. Click on the section titled If your bank records every bounce and reversal, then do steps one and two to create a journal entry to represent the payment being returned, then apply this journal entry to the original payment. This will free up the bill so that the balance can be paid with a new payment.

If you have any other questions, feel free to reach out here.