Just a note:  When you are recording a Bill Credit, after entering the Vendor name, Item 4 says to Click the Expense Tab.  To get the credit to apply to an "ITEM" you have to click the ITEM tab, not the Expenses Tab.  Took me several tries, but finally got this to work.  I think part of my problem was not refreshing the report when I went to see if it worked!  Thank you for your help.