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M
mark-theduelinga
February 28, 2024
Question

How do I make the necessary entries in Quickbooks Online after I have voided a payment made to a vendor?

  • February 28, 2024
  • 1 reply
  • 0 views
The payment was voided because another vendor recently became the payee and the check payment was made to the former vendor.  On the bank account for review, QBO shows an amount spent for the voided payment and an amount received for the refund from Bill.com.  How is this adjusted in QBO?  There is also an outstanding expense for the payment to the new vendor.  Because the amount was reimbursed already from the subsidiary company to the parent company, how does QBO record the credit from Bill.com against the expense to the new vendor, so that the invoice amount owed is zero?

1 reply

R
RogelioL
February 28, 2024

Hi Mark. I hope you're doing well. I'm here to guide you in adjusting the voided payment in QuickBooks Online (QBO) and reconciling the transactions.

 

First off, let's void the original transaction:

  1. Go to the Banking or Transaction tab.
  2. Locate the voided payment transaction and select it.
  3. Choose More and then Void. 
  4. Confirm the Void.


After this, let's handle the refund from Bill.com. If Bill.com has already issued a refund, create a deposit transaction in QBO.

 

Here's how: 

  1. Go to the +New icon, then select Bank Deposit.
  2. Enter the vendor, then choose the appropriate bank account.
  3. Add a line for the refunded amount and categorize it as an Other Income Account or a suitable income account.
  4. Save the Deposit.

 

Since there's an outstanding expense for the new payment to the vendor, ensure it's correctly associated with the new payee. You might need to edit the expense transaction and update the vendor information.

 

Once done, record the credit from Bill.com against the expense. If the credit from Bill.com needs to be applied to the expense for the new vendor, we can create a journal entry: 

  1. Go to the  +New menu and select journal entry.
  2. Debit the expense account for the amount.
  3. Credit the Accounts Payable account for the same amount.
  4. Save the Journal Entry.

 

Alternatively, we can use the pay bills feature to apply for the credit:

  1. Go to the Expenses or Vendors tab and select the Pay Bills.
  2. Choose the bill for the new vendor. 
  3. Enter the credit amount from the bill.com as a negative value in the amount due column.
  4. Save Payment.


We should now be able to adjust the voided payment, record the refund, and reconcile the outstanding expense with the credit from Bill.com in QuickBooks Online. 

 

I've added an article to help you learn how to reconcile your accounts to match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

Please let me know if you need further assistance with your transactions or any QuickBooks-related concerns. Stay safe.

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