The same vendor issued credit for the bill, depositing the funds back. I
entered a vendor credit because I want record of the credit memo and
expense (in and out),
this is fine
but how do I match the bank entry with the vendor
credit which still shows a balance amount?
As suggested, on the deposit change the from account to accounts payable and use the vendor name - THEN use pay bills, select the bill the deposit made, and apply the vendor credit to pay it.
match the deposit in QB to the banking download
