Credit from vendor

If a vendor gave you a credit and then sent you money/a refund for it, so that you don't owe the money back, then:

- Enter a bill-credit transaction (the opposite of a bill) for the amount of the credit.

- Record a deposit for the money the vendor sent you in your bank account. When recording the deposit, use the AP account as the "From Account".

- Use Pay Bills to apply the credit to the deposit, which will appear as something to pay on the pay bills window.

Hello - 

Thank you for your response. 

We did not receive monies back,  I tried a journal entry to fix the issue with the balance owed and that did not work.   I just need to remove the credit  which had no monies involved whatsoever.  But needs to come of the balance owed to Vendor?   The vendor still has a balance with us, so the amount needs to come off the balance but not to credit towards any invoices still owed.   

Thank you!!