we have a supplier that we have returned goods to and been supplied credit. How do we record this credit which we will use against future goods from the same supplier.

To track and apply the credit for returned goods to future bills, you’ll need to record a supplier credit in QuickBooks. Here’s how:

To create a supplier credit, here's how:

1. Go to the left menu, click + New, and select Supplier Credit.
2. In the Supplier dropdown, choose the supplier.
3. Enter the Category details or Item details based on how you record purchases for this supplier (e.g., the category, product, or service related to the credit).
4. Click Save and Close.

Note: If you select a stock item, QuickBooks automatically replenishes its stock. To prevent adding defective items back to stock, make a stock adjustment.

Once You receive a new bill for this supplier, here's how to use the credit:

1. Go to the left menu, click + New, and select Pay Bills.
2. Choose the bill from the supplier. The available credit will automatically appear in the Credit Applied field.
3. Fill out the remaining fields as usual and click Save or Save and Close.

Feel free to reach out in the comments if you have more questions. We’re always happy to assist!