I have a vendor refund check, how do i post it so that the credit on their vendor account is cleared?

Hi there, jfreftink.

Nice to see you here in the Community. I'd gladly assist you with depositing the vendor refund check in QuickBooks Online.

The first thing we can do is to ensure you've created an initial expense or check. Then, record a bank deposit to proceed, linking it to the vendor credit. 

Here's how:

1. Click the + New button, then select Bank deposit.
2. In the Account dropdown menu, choose the account where you got the refund.
3. In the Add funds to this deposit section, pick the vendor who gave you a refund under the Received from dropdown,
4. Choose the Account : Accounts Payable to tie the refund to the vendor credit and enter the Amount.
5. Select the method your vendor used to refund you under the Payment method. 
6. Tap Save and close.

Lastly, Pay Bills if you want to connect the bank deposit to the vendor credit. Even if you're not paying a bill, it's the right thing to take this last step to ensure accurate vendor expenses. I'll show you how:

1. Click the + New button, then click Pay bills.
2. Choose the Payment account.
3. Select the bank deposit you just created. You'll see the amount of the vendor credit in the Credit Applied field, and the Total payment should be US $0.00.
4. Tap Save and close.

To learn more about handling supplier credits, visit this reference: Enter vendor refunds in QBO.

Check out this article for the detailed steps if you need to review all your vendor transactions in QBO: View vendor transactions.

Please let me know if you need more help accomplishing other tasks by commenting below. I'll always have your back. Take care always.

@jfreftink-gmail- 

@Carneil_C 's response failed to mention the most important part!    

In step "4. Choose the Account and enter the Amount."   The account you need to choose is Accounts Payable (A/P).  Without that, you can't follow the rest of the steps and clear the vendor credit.  

@Carneil_C yes that was a very important step and yes the was the answer I needed and it worked wonderfully. Thank you so much.