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A small business records a supplier payment but cannot find it on the bank statement, or finds it debited and then credited back, and does not know what to change in the books.
Find the statement line, if any, and its UTR and date. No line means pending, unpresented, wrong account or never paid. A debit followed by a credit means a return, which must be reversed in the books.
Payment register with mode, UTR or cheque number, debit account and status; returned payments linked to their resend in the narration.
Every recorded payment is either on the statement, explained as pending, or reversed, and resent payments are booked once.
A payment you recorded but cannot find on the bank statement is usually still pending, returned to your account, paid from a different account, or a cheque the supplier has not presented yet. Sometimes it was recorded but never actually sent. The statement line (if there is one), the UTR (Unique Transaction Reference, the tracking number on NEFT, RTGS and IMPS payments) and the dates tell you which.
What are the likely causes?
| Status | What the statement shows | What to do in the books |
|---|---|---|
| Cheque not yet presented | Nothing yet | Nothing; it is an outstanding cheque on your BRS |
| NEFT, RTGS, IMPS or UPI pending | Nothing, or a debit marked pending on net banking | Wait; check status with the bank |
| Payment failed | No debit, or a debit and a reversal on the same day | Reverse the payment entry |
| Payment returned by the receiving bank | A debit, then a credit days later, often with “return” in the narration | Reverse the payment entry; supplier is payable again |
| Paid from a different account | Nothing on this account; debit on another | Correct the bank ledger on the voucher |
| Recorded but never paid | Nothing anywhere | Delete or reverse the voucher; payment is still due |
Returns typically happen when the account number, name or IFSC does not match, or the receiving account is closed or frozen.
My vendor says they did not receive a payment that shows as debited. What now?
- Get the UTR from your statement or net banking.
- Send it to the vendor. Their bank can trace the credit using it.
- Check your own statement for a return credit over the next few working days. A returned NEFT usually comes back with the same amount and a reference to the original.
- Do not reverse or resend yet unless the bank confirms the payment failed or a return credit arrives. Resending early can mean the supplier is paid twice.
A worked example
On 29 March you pay a supplier ₹86,400 by NEFT and record it: Supplier Dr ₹86,400, Bank Cr ₹86,400. The statement shows the debit on 29 March. On 3 April a credit of ₹86,400 arrives with a return narration: the beneficiary account number was wrong.
In the books on 3 April:
- Bank Dr ₹86,400
- Supplier Cr ₹86,400
The supplier now shows ₹86,400 payable again, which is true. On the 31 March BRS, nothing needs explaining: the debit was on the statement. In April the debit and credit cancel out on the statement, and your books show the same.
When you pay again on 5 April with the corrected account, record a fresh payment of ₹86,400. Total paid to the supplier over the period: ₹86,400 − ₹86,400 + ₹86,400 = ₹86,400. One payment, as it should be.
How do you avoid recording the same payment twice?
The risk comes when someone resends the payment and records it, while the original is still sitting in the books as paid.
- Mark the original as returned as soon as the return credit arrives, by passing the reversal entry.
- Link both UTRs. Put the original UTR in the narration of the resend, and the new UTR in the narration of the reversal.
- Record the resend only once the reversal is in.
If you already have the same amount twice in the books, see same amount twice: duplicate entries.
How fast should each rail show up?
NEFT has run 24x7, including holidays, since 16 December 2019, and RTGS since 14 December 2020. RTGS has a minimum of ₹2 lakh per transfer, so a smaller payment you recorded as RTGS was almost certainly sent another way; check the actual rail and UTR. A cheque, by contrast, only appears when the supplier deposits it, which can be weeks later.
What to read next
- Next step: Same amount twice: duplicate entries in bank reconciliation
- Reconciliation errors: missing and mistimed entries
- Invoice-to-bank reconciliation failure modes
- Bank reconciliation software for Indian businesses
TransactIG matches bank statement lines to your books and flags recorded payments with no matching line, or a debit and return pair, in an exception queue with audit-ready exports.