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jenuneekor
December 22, 2020
Question

How to reconcile vendor payment return

  • December 22, 2020
  • 1 reply
  • 0 views

Hello! A vendor sent us a bill, and I paid the bill via wire. I matched the wire in my bank feed to the bill. The wire was rejected, and now I have a returned wire back in my bank feeds. I created a vendor credit initially for the returned wire, but can't figure out if that's the right move (and if so, why I can't match the bank transaction of the incoming funds to the vendor credit). Could you please advise the correct steps for this scenario? Initial bill matched to outgoing wire, now I have the returned wire in my bank feed...

 

Thank you so much!

1 reply

C
ChristieAnn 11
December 22, 2020

Hi there, jenuneekor.

 

Thank you for coming back here to the QuickBooks Community. And, I appreciate you for providing detailed information on what you've done to resolve your concern.

 

Creating vendor credit is not necessary for the process. You can delete this entry and make a deposit instead to match the transaction on the Banking page. Please make sure to post the deposit to the Accounts Payable to an Expense account.

 

Here's how to delete the Vendor Credit: 

 

  1. Click the Expenses at the left panel.
  2. Choose the Expenses section.
  3. Locate the vendor credit and click it to expand the page.
  4. Click the More button and choose Delete.
  5. You'll be prompted with Are you sure you want to delete this? Select Yes to confirm.

 

Once done. you can now go to the Bank deposit page to start creating a deposit. You can click this article to see the process: Record and make bank deposits in QuickBooks Online.

 

After that, you can start matching the deposit to an entry on the Banking page so your account stays accurate.

 

Please refer to this article on how you can reconcile your accounts so they always match your bank and credit card statements to avoid discrepancies: Reconcile an account in QuickBooks Online.

 

Please know that you can always post here if you have other QuickBooks concerns. I'd be happy to help you. Take care always.

J
jenuneekorAuthor
December 23, 2020

Hi! Thank you so much for sharing this information. I deleted the vendor credit and went in to create the bank deposit, but I'm a little stuck here thinking it through. Even if I do these steps, if I ever need to pull up how much this vendor has billed us, how much we've paid them, etc. it won't show me the right information because in QB I have the initial bill and payment already recorded. So then when I get and pay the revised bill, later when we look at this vendor it will show that they billed us for two separate orders but it was one cancelled one, and then one new one. Also, my inventory won't be right because from the initial bill it shows that we ordered and paid for a # of units, and the new bill will show the same.

 

Could you consider this once more and provide any additional information?

 

The vendor billed us $125k. We wired them $125k. The banking matched with the bill. The wire was rejected by the recipient bank, so in my bank feed is $125k coming back in to my account. I now created a new bill for $125k that we are paying by check. Questions:

 

**How do I set this up so QB/our company knows that the initial invoice was basically never paid and is void? I created a second invoice and sent the check for it. I need to ensure that the $$ match up correctly, but also that this is reflected correctly in our inventory and our records for this vendor.

 

Thank you so much!

Jessica_young
Jessica_young
December 23, 2020

Thanks for reaching back out, @jenuneekor.

Let's take a look at what to do next!  Since the bill was matched in your online banking, this created a bill payment to the vendor's transaction.  When the payment was rejected you received that payment back.


Here's what you'll want to do:

 

1. On your Banking page, add the returned wire transfer under the category Accounts Payable.
2. For Vendor/Customer select the correct Vendor name.
3. Then click Add.

 

Next, you’ll edit the Bill payment in Vendor Transaction list.


1. Click the box beside the Bank Deposit to place a checkmark.
2. Uncheck the Bill.
3. Lastly, click on Save and close.

Additionally, if you created a refund receipt for the returned $125,000, you can delete this so we can add it as a Bank Deposit to Accounts Payable and apply that to the Bill Payment made.

 

I'd love to know how this goes! Please don't hesitate to reach back out with any additional questions you have. Take care, and happy holidays! 

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