Thanks for chiming in on this thread, @Khisrav. I appreciate you for providing in-depth details of your concern about documenting these transactions and the returned amount. I'm glad to share the steps on how you can track this properly in QuickBooks Online (QBO).

Since you have already paid the bill, we can record a supplier credit for the refunded amount. Then, create a bank deposit for the same amount that went back into your bank account. Here's how to create a supplier credit:

1. Click the + New button and pick Supplier credit.
2. Choose the supplier in the Payee field.
3. Depending on how you record purchases with this vendor, enter the Category details or Item details.
4. Enter the KES 26,900 in the Amount field.
5. Complete the necessary fields, and hit Save and close.
   
   

Once done, let's record a bank deposit and use Accounts Payable (A/P) to proceed with linking it to the supplier credit.

1. Click the + New button and then Bank Deposit.
2. In the Add funds to this deposit section, pick the supplier who gave you a refund under the Received from dropdown.
3. Select the Creditors account (Accounts payable) in the Account field.
4. In the Amount field, enter the KES 26,900 for the refund.
5. Tap Save and close.
   
   

Lastly, use Cheque to connect the bank deposit to the supplier credit. Here's how:

1. Click the + New and select Cheque.
2. Pick the payee and choose the Supplier Credit and Deposit (from the drawer that appears on the right-hand side) and add them both.
3. Balance should be 0 as they will cancel each other out.
4. Select Save and close.
   
   

For more details about the process, please refer to this article: Record a customer refund or supplier refund in QuickBooks Online.

Furthermore, if your bank is connected to QBO, make sure to match it to these entries when they show up in the For Review tab so they won't duplicate your transactions. Check out this article to learn more about doing it: Categorise and match online bank transactions in QuickBooks Online.

Our door is open 24/7 if you still need further assistance with recording a supplier refund transaction. Just post here again if you have any additional QuickBooks-related concerns. We'll be more than happy to have you here again, @Khisrav!

Thanks, @Kevin_C  it worked perfectly, I appreciate 

Thanks for getting back to the thread and adding a confirmation, @Khisrav.

I'm glad that the steps shared by my colleague Kevin_C work perfectly on your end.

If you have any additional concerns, please add your details to this thread and I'll help you out. Have a good one.