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flower00
February 23, 2023
Question

Paid vendor bill twice

  • February 23, 2023
  • 1 reply
  • 0 views

Hello, 

 

I accidentally paid an invoice twice, both by ACH. The vendor gave added a credit of the duplicate amount on a future invoice. Do I need to link the duplicate payment to the original bill in QBO? Or should I enter a check for that amount? And then would I need to enter a Vendor Credit so that we can add the credit to the future invoice in QBO? 

 

Thank you.

1 reply

MichelleBh
MichelleBh
February 23, 2023

Thank you for explaining your concern clearly, flower00.

 

I'll be happy to show you the steps you need to take in QuickBooks Online to handle an overpayment to a vendor.

 

I'd recommend creating a bank deposit and linking it to the check. Let me show you how:

 

  1. Click the New + icon and choose Bank Deposit.
  2. Under Add funds to this deposit, pick the vendor name in the Received from the field.
  3. Choose Accounts Payable in the Accounts field, then enter the credit/refund amount in the Amount field.
  4. Click Save and close.

 

To link the deposit to the check, follow the steps below:

 

  1. Go to the New menu and select Check. 
  2. In the Vendor ▼ drop-down, pick your vendor.
  3. Click Add on the right side. 
  4. Hit Save and close. 

 

Once done, please make a vendor credit so you can use it on future bills from that vendor. Go as follows: 

 

  1. Go to the Plus icon and select Vendor Credit. 
  2. Pick your vendor name in the field. 
  3. Complete the other details and click Save and close. 

 

Don't forget to reconcile your account by the end of the month. This is so that you can keep track of your business's real-life transactions and find any mishaps. It also has instructions for editing reconciliations that have already been done.

 

Additionally, you may open this article to view details on how to run a particular report that will reflect all payments made to vendors: Run a report with vendor totals.

 

Please let me know if you have additional questions or concerns about handling overpayments in QBO. I'll be here every step of the way. Keep safe!

F
flower00Author
February 24, 2023

Thank you. Do I need to add a deposit if the vendor did not refund the amount back to us? They have added the overpayment amount to a future invoice. 

M
MirriamM
February 24, 2023

Hello there, @flower00.

 

Let me join the thread and provide clarifications about vendor credits in QuickBooks Online (QBO).

 

You'll be glad to know that there's no need for you to create a deposit or vendor credit, as the credit will automatically show on the vendor's balance. And once you pay a future bill, you'll just have to simply apply the credit.

 

 

For more information about refunding a vendor, check out this article: Enter vendor credits and refunds in QuickBooks Online.

 

For future reference, visit our Expenses and vendors page for more insights about entering expenses, paying bills, writing checks, and managing suppliers.

 

If there's anything else you need, please feel free to leave a reply below. We're always around to help. Take care and stay safe.

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