Hello! I use QuickBooks Online and need help properly recording a lost check to a vendor. The check was issued through my bank’s bill payment portal. I have entered the bill in QuickBooks and have applied the bill payment to this bill. My AP is zero. But, the check was lost to my vendor and I cancelled the check. The bank will be refunding the money. I have initiated a new bill pay (via check) with the bank to pay the vendor again. How do I properly record the refund, apply to the already paid bill and new bill payment in this transaction? Also, the bill for this check was for a prepaid expense for the year. In the original bill, I have assigned the category to an other current asset account and I have set up a reoccuring transaction for a monthly adjustment to an expense account. Additionally, how do I make sure that the prepaid other current asset account and reoccuring transaction are not negatively affected by recording the cancelled bill payment check, subsequent refund and new bill payment to the vendor? Thank you so much for your help!

QB Issue Resolution:

I’ll walk you through on how you can record a refund from your vendor.

 

You’ll have to enter a vendor credit first. This ensures the credit offsets the expense account you used from the original bill.

 

Here’s how:

 

1. Go to the + New menu.
2. Select Vendor credit.
3. From the Vendor drop-down menu, choose the vendor in question.
4. Under the Category details section, enter the category you used from the original bill.
5. Fill in the correct amount.
6. When done, click Save and close.

Next, you’ll need to record a deposit for the money you got from the refund. Lastly, you’ll have to create a Pay Bills transaction to link both the vendor credit and the deposit transaction.

 

See Step 2 and Step 3 of this article for additional details: Enter a refund from a vendor. You can find links to related articles for vendor credits.

 

On the other hand, take a look at this article on how you can enter a customer refund in QuickBooks Online: Record a customer refund in QuickBooks Online. In this article, you can find a short video that will act as a reference to the refund process.

 

Resolution for Issue 'Hello! I use QuickBooks Online and need help properly recording a lost check to a vendor. The check was issued through my bank’s bill payment portal. I have entered the bill in QuickBooks and have applied the bill payment to this bill. My AP is zero. But, the check was lost to my vendor and I cancelled the check. The bank will be refunding the money. I have initiated a new bill pay (via check) with the bank to pay the vendor again. How do I properly record the refund, apply to the already paid bill and new bill payment in this transaction? Also, the bill for this check was for a prepaid expense for the year. In the original bill, I have assigned the category to an other current asset account and I have set up a reoccuring transaction for a monthly adjustment to an expense account. Additionally, how do I make sure that the prepaid other current asset account and reoccuring transaction are not negatively affected by recording the cancelled bill payment check, subsequent refund and new bill payment to the vendor? Thank you so much for your help!' available: Yes (Solved).
Source: Intuit Community forum.

Hello! I use QuickBooks Online and need help properly recording a lost check to a vendor. The check was issued through my bank’s bill payment portal. I have entered the bill in QuickBooks and have applied the bill payment to this bill. My AP is zero. But, the check was lost to my vendor and I cancelled the check. The bank will be refunding the money. I have initiated a new bill pay (via check) with the bank to pay the vendor again. How do I properly record the refund, apply to the already paid bill and new bill payment in this transaction? Also, the bill for this check was for a prepaid expense for the year. In the original bill, I have assigned the category to an other current asset account and I have set up a reoccuring transaction for a monthly adjustment to an expense account. Additionally, how do I make sure that the prepaid other current asset account and reoccuring transaction are not negatively affected by recording the cancelled bill payment check, subsequent refund and new bill payment to the vendor? Thank you so much for your help!: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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