How to record a returned wire transfer sent to a vendor/supplier

Thank you for connecting here in the Community, @loopyloops.

I'll be more than happy to help you how to record your returned wire transfer and the bank fee accounted for it. I'll provide you with detailed information on the process for easy work on your end.

First, let's record the returned money as a bank deposit in your bank account.

Here's how:

1. Click the + New icon.
2. In the Vendors column select Expense.
3. Select the Payee to whom you've sent the money and the Payment account which is your bank account.
4. In the Category details fill in the necessary information: (Category: Accounts payable, Description: Advanced deposit, Amount: $10,000.00) you should record it as accounts payable to reverse the posting on that account.
5. Click Save and close.

Second, record the money returned to your bank account minus the small fee of $15.89:

1. Click the + New icon.
2. In the column Other select Bank deposit.
3. In the Account tab select the bank account where you recorded the transaction earlier.
4. Fill in the necessary information in the Add funds to this deposit section: (Received from: Select the same vendor, Account: Accounts payable, Description: Money refund, Amount: 10,000)
5. Record the bank fee in the second line (Account: Bank fees & service charges, Description: Service fee, Amount: 15.89) you should put a minus sign on the amount to automatically charge it to the 10,000. 
6. Click Save and close.

Once done, the wired money and the returned amount are now in your bank register and at the end of the month, you can reconcile them. Both transactions will cancel out and this will correct your vendor's balance.

Yet, they can be accidentally linked to future bills and expenses because they remain open to the vendor profile. To stop this from occurring, let's link and close them through bill payment transaction.

Here's how:

1. Click the + New icon.
2. Select Expense in the Vendors column.
3. In the Payee tab select the same vendor and Payment account.
4. A pop-up will show on the right side of the screen that has the name Add to expense, and then click the Add button to both transactions (Deposit and Expense).
5. Click Save and close.

After saving the transaction,  it will turn into a bill payment (check). 
 

There you go, you now successfully recorded your returned wire transfer. 

You may want to learn how to balance your account so they always match your bank and credit card statements. You can read through this article: Reconcile an account in QuickBooks Online.

Don't hesitate to reach us back or leave a reply if you need further assistance with returned wire money transfer. I'll be willing to lend a hand. Have a good one!