How to record a returned payment?

Question asked by Darren Green 10 years ago

I use the automatic bank import, but often create bills manually. When importing a bank statement then payment is allocated against the bill, and it gets marked as paid. All is well so far.

Sometimes a payment bounces, and gets returned. How should I record this? If I record it as a refund, then the bill is still "Paid", but really i want it to become unpaid again. Creating a new bill is painful because if I ad things like attachments or supplier invoice numbers I get "duplicates" of that information.

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4 Replies

Only workaround I can think of would be to subsequently void the first allocated payment (it'll fall back onto the bank import), go onto the import and post it to a sundry balance sheet account then also post the bounced entry to the same place (thus cancelling each other out) you'd then be left with an unpaid bill/invoice to which you could allocate the correct payment when it finally happens.

Make sense? It's late...

Best answer
10 years ago

HI Darren

Do you tend to know the payment has bounced before you assign the first part against the bill/invoice?

10 years ago

Kevin,

No. The payment comes through on the bank statement fine, so gets allocated against the bill. It is only a week or two later that it bounces.

10 years ago

Only workaround I can think of would be to subsequently void the first allocated payment (it'll fall back onto the bank import), go onto the import and post it to a sundry balance sheet account then also post the bounced entry to the same place (thus cancelling each other out) you'd then be left with an unpaid bill/invoice to which you could allocate the correct payment when it finally happens.

Make sense? It's late...

Best answer
10 years ago

Kevin, yes that makes sense. It was what I had tried to do, but the whole "sundry" balance wasn't sitting comfortably. Just feels a bit messy from a data quality perspective.

Thanks

10 years ago

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