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lkoups
January 28, 2022
Question

Payment to wrong supplier

  • January 28, 2022
  • 1 reply
  • 0 views

Hello, please can I get some help on how to handle some payments that were accidentally made to a wrong supplier- we paid £200 back in November to a supplier but it went to the wrong supplier- it was coded as an expense from the bank downloads. However, we then found out it was incorrect and received a refund of this £200 but not until January.

 

How is is best to have dealt with this refund- would it be best to deposit it into the expense account we coded the payment into above so they just cancel each other out or is there a better way? 

 

I wasnt sure if we could have set up a supplier credit and then cancelled this out somehow.

 

Thanks for your advice.

1 reply

MariaSoledadG
MariaSoledadG
January 28, 2022

Let's make sure to record the payment made to the wrong supplier, lkoups.

 

Entering a supplier credit depends on how you enter the purchases. There are two scenarios that I can think of on how you can record the payment. Since you've already received the refund, you can enter the refund using bank deposit affecting the Creditors account if you've paid the bill or bank deposit affecting the expense account if you wrote a check. Let me show you how:

 

1st scenario:

  1. Select + New.
  2. Select Bank Deposit.
  3. In the Add funds to this deposit section, fill in the following fields:
    • Received from: Select or enter the Supplier name.
    • Account: Select the Creditors (Accounts Payable) account.
    • Amount: Enter the Supplier refund amount.
  4. Select Save and close.

 

2nd scenario:

  1. Select + New.
  2. Select Bank Deposit.
  3. In the Add funds to this deposit section, fill in the following fields:
    • Received from: Select or enter the Supplier name.
    • Account: Expense account.
    • Amount: Enter the Supplier refund amount.
  4. Select Save and close.

 

For more information, you can also check out this article for your reference: Handle Supplier Credits and Refunds in QuickBooks Online. Furthermore, learn how to review downloaded bank and credit card transactions and put them in the correct accounts. I've added this article for your guide: Categorise and Match Online Bank Transactions in QuickBooks Online.

 

Reach out to us if you have any concerns about the payment made to the supplier. We're here to make sure everything is taken care of.

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