Let me shed some light on your concern, leeboy.

You'll have to apply the vendor credit toward any open or future bill to clear the balance. It also ensures the credit hits the expense account you use for this vendor.

You can browse through this article for more in-depth information: Enter vendor credits and refunds in QuickBooks Online (QBO). From there, you'll learn about the various methods to track these types of transactions.

For resources to help you grow your business, feel free to visit the Community page. It covers articles that will show you how to manage your accounting activities with QBO.

Reach out to me again if you have additional questions about applying for vendor credits or refunds. I'd be delighted to lend a helping hand. Have a good one.