Hi there, @CSC1.
The steps provided by my colleague, Angelyn_T guides you to record the two deposits either as a vendor credit or refund in QuickBooks.
However, if you want to see the credit when reconciling, you can create a check and record it to your Accounts Payable account, decreasing the balance.
- Go to the Banking menu, then select Write Checks.
- Enter the vendor name, date, and the payment amount.
- Go to the Expenses tab.
- In the ACCOUNT column, enter Accounts Payable.
- Select Save & Close.
That should do it! This will allow you to record your vendor payments in QuickBooks accurately.
Stay in touch in the Community if you have follow-up questions about applying vendor credit in QuickBooks Desktop. I’m always here to help. Have a great day.