Let me make it up to you by ensuring you can record the returned overpayment in QuickBooks Online (QBO), Linda.
We can create a bank deposit affecting Accounts Payable to record the returned overpayments. Then, link the bank deposit to the vendor credit using the Pay Bills.
Here's how to create a bank deposit:
- Go to the + New option and click Bank Deposit.
- Under Received From, select the vendor's name.
- In the Account drop-down menu, choose Accounts Payable.
- Fill in the needed fields.
- Click Save and Close.
After that, proceed to pay bills. Here is how:
- Go to + New.
- Choose Pay Bills.
- Select the bank deposit you just created. You will see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
- Click Save and Close.
Here's an article to ensure that everything is correct and that your deposits match what you have in your bank. Here's a link for more details: Reconcile an account in QuickBooks Online.
Let me know if you have other questions about handling vendor overpayment. I'm always here to help. Take care.