Hello sarah-j-hands-gm, Welcome and thanks for sharing your question/issue on the Community page, so in real life if you paid for it and have that transaction in the bank you would just match it up.If you then have a supplier refund after that then you will need to do the steps below to show the supplier refund in the account.
Supplier Refund
1. Go to the + icon then select Supplier Credit.
2. Choose the correct date, supplier and amount with the VAT (if required).
3. Next go to the ‘+‘ icon and create a Bank deposit, this is for the account (Bank) the refund has gone into.
4. Select the amount, date and supplier on the deposit.
5. Making sure the line item is for the Creditors account making sure to choose No VAT.
6. Then got to cheque and add the deposit and supplier credit
7. Then match at the bank
Depends on what you are actually mean, if you don't want to do the above suggestion you could exclude both the payment out and payment in this will also keep the balance equal as well.
