This is literally the perfect response. I followed your directions and bam, done. Great advice. Thank you

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@IamjuViel wrote:
You’re on the right track, @eas22487.

 

Let’s first delete the bill and ensure to record the vendor refund so you’ll be able to apply it as credit.

 

To delete the bill:

1. Go to Vendors.
2. Choose Vendor Center.
3. Select the vendor's name.
4. Double-click the bill payment, bill or credit.
5. Press Ctrl and D at the same time to delete.
6. Select OK to confirm.

   Once deleted, let's record the vendor refund. Here's how:

   1. Click Banking.
   2. Choose Make Deposits.
   3. Select the specific Deposit To bank account where the funds were initially posted.
   4. Type in the name of the vendor in the Received From column.
   5. Choose Accounts Payable as the account affected.
   6. Enter the payment method and the amount of the refund.
   7. Click Save and Close.   

      Once recorded, recreate the bill and apply the credit, here's how:

      1. Go to Vendors.
      2. Choose Vendor Center.
      3. Click New Transaction drop-down.
      4. Select Pay Bills.  
      5. In the Pay Bills window, select Show all bills.
      6. Choose the specific AP account.
      7. Put a check mark on the deposit you've recorded.
      8. Click Set Credits.  
         1. In the Discount and Credits window, choose Credit tab.
         2. Put a check mark on the credit that you've created.
         3. Click Done.
         4. Hit Pay Selected Bills.You can now see a zero balance in your Open Balance Report.

             

            Also, you can check these articles for additional insights:

            • Void or delete a bill or bill payment check
            • Record a vendor refund in QuickBooks Desktop
            • Pay bills in QuickBooks Desktop

              Always feel free visit us here in the Community if you have other questions. I’m always here to help.

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@IamjuViel