Hi sgholkar-triangl,
Welcome to Community! QuickBooks Online has the options you need to records the supplier refund seamlessly. I'll be happy to help!
Entering a credit from a supplier depends on how you've entered the purchase. Here's a helpful guide to walk you through the steps, based on how your entry was made originally. If you're not sure which section is best, please reach out to your accountant for their expertise. If you don't have an accountant, we can help you locate one in your area.
Please feel free to reach back out if you have other questions. We'd be glad to assist!