Bounced Supplier Payment

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We paid a supplier via EFT Transfer on 26th November, this set the invoice to History because it was paid, created the bank payment etc. Because it is EFT the whole batch appears on the statement and gets reconciled.

We then received the money back because it was wrong account number.

I have one person in Sydney who does bank reconciliation and another person elsewhere who does the AP management.

I followed some instructions on the web for a refund so it created a return in Payables and Deposit in bank. I have now accounted for the refund.

BUT how does the person in AP know that they need to make this payment again just from the system?

If I look at Aging nothing is outstanding BUT we do need to reprocess the payment.

Apart from a suspense account to book the refund and have someone review etc. Can this be managed through AP?

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Victoria Yudin 22,769 on at

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Technically you did not receive a refund or return. I would have recommended simply voiding your original payment - that would have opened up the AP invoice again and let you pay it. (That would have also addressed the Bank Rec module.)

At this point you have a return that has debited Cash and credited account X. To fix this as well as the original issue, you can enter a payables invoice or misc. charge to debit account X and credit Accounts Payable. Then you can enter a new payment for this invoice or misc. charge.

Hope that helps.

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Kathryn Stretch 35 on at

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Victoria,

How should this situation be handled in the original EFT cleared the bank at the end of March; therefore was reconciled with the March bank statement, but then was returned at the beginning of April? Since it has been reconciled, it cannot be voided, and now the vendor wants a check, so the invoice needs to be available again for a check to be printed.

Thank you.

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Victoria Yudin 22,769 on at

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Kathryn,

This is not the same issue as the original post, right? They entered a return in payables to account for the money coming back - did you do the same thing?

If not...if all you have at this point in GP is a payment entered in the AP module in March and reconciled in the Bank Rec module, then my recommendation would be to void the AP payment using April dates - you can change the dates when you are voiding and this is important to do. Also, in out-of-the-box GP you can void AP payments even if they have been reconciled int he Bank Rec module, so unless you have a customization preventing this, it should not be an issue. This will create a negative payment (ie, money coming back in) on your Bank Rec for April. This will also cause the original AP invoice to be unapplied and available for payment again.

Hope this helps.

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Heather Roggeveen 9,146 on at

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Just to add to Victoria's suggestion, which I 100% agree with, you don't lose track of the original details because they will appear still against the supplier. You can then go into the payment that was voided and add a note to it to explain what happened.

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Victoria Yudin 22,769 on at

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Heather has a very good idea. Notes are are not used nearly enough and are great for exactly this kind of situation.

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