Incorrect Supplier Paid and Reconciled Before Refund Received - How Do I Fix This?

Ann-Marie_10060888

Hi there
I am using Reckon Accounts Plus 2019, and recently found out that I paid an invoice to the wrong supplier back in January - which has already been reconciled.
The supplier has refunded the amount paid to them in error, and I have paid the correct supplier.
How do I sort this out, accounts-wise, for GST - seeing as I've already said I took care of it with the correct (NOT) supplier back in January?

Linda ABC

Hi Ann-Marie... if you entered the bill payment back in January which was then reconciled... then you can just enter the refunded amount as a Make Deposit - and put it to a suspense account (I make sure every client of mine has a Bank Account called Items to Follow Up)... then when you made the payment to the correct supplier - you can do a Write Cheque and allocate this to Items to Follow Up as well - these 2 entries will cancel each other out - and you will just be left with the GST values etc that you originally entered.  I would put a memo on the Deposit and the Cheque detailing what has happened. 

Ann-Marie_10060888

Hi Linda, thanks so much for replying. Just so I am clear ... I set up a bank account called “Items to Follow Up” and deposit the refunded amount into that (GST free, I’m assuming), and then I pay the correct supplier from that account, also GST free? I’m guessing I also need to alter the payee on the Jan payment (that included GST) to the supplier it actually went to, not who I thought it went to? Apologies for being so obtuse ... I’m new to the bookkeeping scene and have never paid someone incorrectly before

Linda ABC

No, leave the January entry as it was intended to be... ie paying off the correct supplier...  just make sure the 2 entries to Items to follow up (yes, you are correct no tax code on either of these) have good notes on what actually happened...

Ann-Marie_10060888

Fantastic! Can’t thank you enough, Linda