How to record a returned payment?

Question asked by Darren Green 8 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.

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...

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.


HI Darren

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


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.

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