I have customers pre-pay my business for our service that purchases books on their behalf. I made a mistake and provided someone with the wrong book. Out of respect and good customer service, I re-ordered the correct book. How do I register that payment to the vendor where it is not a billable expense that would normally be invoiced? I’m just “eating” the cost and need to log it as such. I tried “Billable Expense - Cost”, but it shows up as a “Suspense” amount in Equity. Is that fine?
Welcome to the forum.
First, your title was edited to reflect the actual subject of your post. It helps no one to know you were embarrassed.
Second, your situation is totally divorced from any aspect of billable expenses. It is an ordinary purchase and should be entered as a purchase invoice or payment, depending on whether the purchase was on credit. There should be no second sales invoice, either. The purchase should be posted to a suitable expense account.
Third, nothing should be left in Suspense. That is where the program stores mistakes until you correct them.