Hi there stevehkim,
It's vital that all your transactions be entered correctly so that your supplier balances can be accurate. QuickBooks Online is a great tool able to help you keep track of the money you owe to your supplier based on bills, payments as well as credits. I can provide some information about credits.
If your credit is being automatically applied to bills, one possible cause for this would be the automatically apply credits feature being turned on. You can turn it off by going to the Gear icon, then Account and Settings. Go to the Advanced tab, then scroll down to the Automation section. Remove the checkmark from Automatically apply credits, as well as automatically apply bill payments. Don't forget to save.
If you need further assistance with your supplier credits, I recommend reaching out to the QuickBooks Online support team outside of the Community. They'll be able to view your credits with you in order to provide the best assistance in applying them correctly. You can reach out to them using one of these methods:
Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
Social Media: Facebook and Twitter
If you have any other questions, feel free to reach out here.
