Debit Memo

Welcome to the Community, @jacummins. I'll lend a hand with your concern to achieve your goal.

Regarding this query, you'll want to create a credit for your vendor. Here's how:

1. Go to the Vendors menu and choose Enter Bills.
2. Select the Credit radio button.
3. From the Vendor field, select the vendor who sent the refund.
4. In the Credit Amount field, enter the amount of the refund.
5. Select the Expense tab.
6. In the Account field, select the account used on the original Bill.
7. In the Amount field, enter the amount of the refund.
8. Click Save & Close.
   
   

If this isn't the case, would you mind adding additional details to your concern? This way, I can provide you with a timely response.

Just in case, I'll be adding this article for your reference: Record a vendor refund in QuickBooks Desktop.

In addition, you might need this resource if you want to track the money you owe vendors in the future. Please browse this article for more insights: Learn about the Accounts Payable workflows you can use in QuickBooks Desktop.

You can always reply or reach out to us again if you need anything else with QuickBooks Desktop. We're always here to guide and assist you whenever you need help. Have a good one! 

This is how we handle the issue, and it works.  But does QuickBooks have a form to send the customer that would be a Debit Memo or Debit Note?  To them they are being debited so they have to issue a credit back to us.  It's really just a matter of terminology.  I don't want them to read it like we are giving them a credit back.