Thanks for chiming in on this thread, @SoniaMB. I'll be happy to outline the steps to record a vendor refund from an out-of-stock item in QuickBooks Online (QBO).

First, create a vendor credit for the item that was out of stock. Then, apply it to the bill as payment. To do that:

1. Go to + New, then click Supplier Credit.
2. Select the Supplier and enter the out-of-stock items in the Item Details section.
3. Fill in other necessary fields and click Save and close.

Once done, pay the bill using the vendor credit. Here's how:

1. Go to Expenses and select Bills.
2. Locate and click the bill in question.
3. Select the 1 payment hyperlink at the upper-right corner of the screen and click the date to open the Bill Payment page.
4. The credits will show in the Add to Bill Payment section. Select Add to apply.
5. Click Save and Close.

Then, deposit the amount refunded by the supplier. 

Furthermore, skip the inconvenience of tracking and recording receipts from your suppliers. In QBO, you can upload them from your computer or mobile device, and the program will extract information from it for you to review.

Feel free to reach out to us if you need additional assistance recording supplier refunds. I'll join back in the thread to provide further help. Take care, and have a nice day ahead!