1. If the payment has been cleared or reconciled, you will need need to change the Status to O in Cash Management. Refer to article 22176 DocLink: How do I change the reconciliation status of a transaction in Cash Management? IMPORTANT: Make a note of Reconciled Status and the Cleared Date used before changing the status. You will need this information later when re-reconciling the payment in step 6 below.
2. In Accounts Payable, void the payment. Refer to article 17504 DocLink: How do I void an Accounts Payable check or payment?
   Note: When possible, it is recommended that you void using the original date. Leave Restore open invoices marked.
3. Change the vendor on the invoice. Refer to article 27158 DocLink: How do I change the vendor on an Accounts Payable invoice?
4. Print the check or record the payment for the correct vendor.
5. For the payment that cleared the bank under the incorrect vendor, you may either enter it as a subtraction adjustment in Cash Management or enter an invoice on that incorrect vendor and record the payment in Accounts Payable. If you do the payment in Accounts Payable, use the void date from step 2 as the payment date/check date. To enter an adjustment in Cash Management:
   1. In Cash Management, from the Tasks menu, select Edit Register.
   2. Select the bank account, then click OK.
   3. Enter the Date the same date you used for the void payment in step 2.
   4. For the transaction Type, you may select either Adj or Wdl
   5. In the Description, enter a description for this payment. You may want to enter the original check number and/or the payee name. You have up to 30 characters for this field.
   6. In the Subtraction field, enter the amount of the payment that originally cleared the bank.
   7. In the detail window, for the GL Debit account, select the account you want to use. You may want to use a clearing account. This account will be used in step 7.7 below when you receive a refund back from the vendor that was paid in error.
   8. Click OK.
   9. Click Finish and post.
6. If you changed the status of the original payment in step 1, then do the following. Otherwise, skip to step 7:
   1. Re-reconcile the payment that cleared the bank by changing the Reconciled Status back to its original status noted in step 1 and enter the Cleared Date that was also noted in step 1. This will be the payment or adjustment that was re-entered in step 5. Refer to article 22176 DocLink: How do I change the reconciliation status of a transaction in Cash Management?
7. When you receive the refund from the vendor that was paid in error, record the deposit in Cash Management.
   1. In Cash Management, from the Tasks menu, select Edit Register.
   2. Select the bank account, then click OK.
   3. Enter the Date for the deposit.
   4. For the transaction Type, select Dep.
   5. Enter a Description for the deposit.
   6. In the Addition field, enter the amount of the deposit.
   7. In the detail window, for the GL Credit account, select the same account that was used in step 5.7.
   8. Click OK.
   9. Click Finish and post.