Rejected payment

  • 2
  • Question
  • Updated 3 years ago
Dear all,

I have an issue on recording the rejected payment on Reckon account hosted. So I have paid my supplier $440 inc GST for the work they done. However, we put the wrong bank account detail when we made a payment.

So, on the following day, the money bounced back to our bank account and we made another payment to clear the bill.
How do I record the rejected payment and the new payment to clear my related bill?

Thank you

Regards, Nia
Photo of Nia

Nia

  • 342 Points 250 badge 2x thumb

Posted 3 years ago

  • 2
Photo of John Graetz

John Graetz

  • 24,346 Points 20k badge 2x thumb
HI Nia.  I take the easy approach and have never been picked up by the auditors for taking this approach.  I don't record the return or the subsequent payment through Reckon, rather i just cross out the original debit and credit returned as showing on the bank statement when I do the bank reconciliation.  I know that others will not agree with me, but I take the easy and less cumbersome and time saving approach.  If you wanted to take what might be a more accountable approach, you would need to "undo" the original cheque, by allocating the cost to say a suspense account and doing the same offset for the return credit.  Then, for the second time around for the payment, you would need to do what you originally did when you recorded the payment.  John L G
Photo of Nia

Nia

  • 342 Points 250 badge 2x thumb
Hi John,

Thank you. Will try to apply this approach.

Regards,
Nia
Photo of Kevin Russell

Kevin Russell, Accredited Partner

  • 52,130 Points 50k badge 2x thumb
Raise a credit for the bill and refund the credit with a second line to the bank
Photo of Nia

Nia

  • 342 Points 250 badge 2x thumb
Hi Kevin,

Thank you for your reply.
I tried to do the same thing before.
However, the original invoice has stated as paid. it is impossible to create a new invoice as there will be double bills.
So what should I do on the previous payment and original invoice?
Do I just need to void the previous payment?
Thank you

Regards,
Nia
Photo of Kevin Russell

Kevin Russell, Accredited Partner

  • 52,130 Points 50k badge 2x thumb
Nia You can enter a credit for the expense and refund the credit by entering a second line allocated to the bank account. This will get the accounting, the bank and the GST right. Cheets
Photo of Colin Connop

Colin Connop

  • 122 Points 100 badge 2x thumb
make first invoice to roger smith and then  credit his account with returned funds or a journal entries sort the problem with credit and debit or   make a slush ac in chart of accounts to put it credit and debit but otherwise bank register will be out! 
Photo of Nia

Nia

  • 342 Points 250 badge 2x thumb
Hi Collin,

Thank you for your suggestion.

Regards,
Nia