We have somehow paid creditor into wrong account, there is a high possibility these funds wont be returned by the bank. We therefore had to pay the creditor again into their correct bank account. I need help with applying the additional payment.
Hi Richo2202
Thanks for your post. In this situation I'd delete the incorrect payment and reprocess with the correct details, then match that payment transaction with the second correct bank feed transaction.
For the payment that went to the wrong bank account, I'd recommend speaking to your accountant about which account to allocate it to. Generally speaking, while it's in dispute you could record a Spend money and allocate it to a suspense type account. If it gets returned you'd record a Receive money allocated to the same account. If it doesn't get returned you'd need to write it off by recording a general journal moving it from the suspense account to the applicable write off account.
Please let me know if you need further help.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
