QBO help with a bill payment that went to a closed bank account, later refunded by Intuit. How to fix when affects a 1099 vendor

Void only works before a payment is processed. Once Bill Pay sends it through Intuit's rails, QBO blocks voiding. Instead, you can create a Vendor credit and a Bank deposit for the refund, apply the credit to the bill, and then pay the vendor again.

Here's how:
 

1. Go to +Create > Vendor credit.
2. Select the Vendor.
3. Use the same expense account/category from the original bill.
4. Enter the amount and click Save.

Next, record a Bank Deposit for the refund. Select the bank account Intuit returned the funds to, set the vendor as Received From, use the same expense account as the original bill, enter the amount, and save.

Then find the original bill and apply the Vendor Credit through Pay Bills. This reopens the bill as unpaid. Finally, pay the vendor again using the correct bank account.

Since this all happens in the same month, using the same expense account throughout means the credit and re-payment net out correctly on the 1099. Run a 1099 Transaction Detail Report afterward to confirm only the actual payment counts.

You can reply below if you have other concerns. We're here to help.