Payment in error

Hi Lee, you can record this as a customer refund, first by creating the company that you work for as a customer in QuickBooks. After this, add the payment (made to you in error) to their account as an unapplied credit - you can do this from the bank feed by changing the category field to Debtors > select no VAT > add. To show that this has been refunded, follow the steps below: 

1) Select + New > Expense.
2)  In the Payee field, select or enter the customer.
3) In the Payment account field, select the bank the money is being refunded from.
4) In the Category field, select the Debtors account 
5) In the Amount field, enter the amount of the refund.
6) In the VAT field, select No VAT (not inclusive/exclusive of tax).
7) Select Save.
8) Next, go to + New and select Receive payment.
9) Select the Customer and select the Payment method and Deposit to.
8) Balance should be 0 as they will cancel each other out.
9) Select Save and close.

The bank will then show an automated match to the expense. 🙂