Hello there, @VENCETEO.
QuickBooks makes it easy for you to handle a returned payment (due to non-sufficient funds) from your vendor. Let me guide you on how depending on the product you're using.
If you're using QuickBooks Online (QBO), you’ll have to create a journal entry and a bill payment check. This is to unlink the bill from the payment transaction.
First, you need to enter a reversing journal entry. Here's how:
- Go to the + New button.
- Select Journal entry.
- Make sure the Date, Entry No, and Vendor name are correct.
- Debit the checking account for the amount of the returned payment.
- Credit the A/P account. The same amount of the returned payment.
- Click Save and close
Then, unlink the bill from the payment and link it to the journal entry. Here's how:
- Go to the Expenses menu.
- Select Vendors.
- Locate the vendor and open the original bill payment.
- From the Bill Payment screen, put a checkmark in Journal Entry you’ve created.
- Uncheck the Bill originally paid by the bill payment check.
- Enter a Memo to indicate the payment was returned.
- Select Save and close.
Finally, create a new bill payment check to record the new payment transaction. Here's how:
- Go to the + New button.
- Select Pay bills.
- Choose the bill originally paid by the returned payment.
- Fill in all the necessary details.
- Click Save and close.
Meanwhile, If you're using QuickBooks Desktop (QBDT), make sure not to void the original bill payment check because it may be in a previous accounting period. For the step-by-step guide, you can check out this article: Manage a bounced check you wrote.
Additionally, I'd recommend pulling up a vendor report. This is to monitor your expenses and make sure they're accurately recorded. Just go to the Reports menu for both QBO and QBDT products.
Please know that you're welcome to comment below if you have other concerns or follow-up inquiries about managing your vendor transactions and payments in QuickBooks. I'm just around to help. Take care always.
