We have a credit balance for one of our vendors. The vendor sent us a check to clear the credit balance. How do I post this to QBO? I need to deposit the check.

1. Click the + New button, then select Bank deposit.
2. In the Account dropdown menu, choose the account where you got the refund.
3. In the Add funds to this deposit section, pick the vendor who gave you a refund under the Received from dropdown,
4. Choose the Account : Accounts Payable to tie the refund to the vendor credit and enter the Amount.
5. Select the method your vendor used to refund you under the Payment method. 
6. Tap Save and close.
7.  

**Make sure that for step 4 you choose Accounts Payable.  You won't be able to tie the deposit to a credit, if you don't choose this account.  

Then Pay Bills if you want to connect the bank deposit to the vendor credit. Even if you're not paying a bill, it's the right thing to take this last step to ensure accurate vendor expenses. I'll show you how:

1. Click the + New button, then click Pay bills.
2. Choose the Payment account.
3. Select the bank deposit you just created. You'll see the amount of the vendor credit in the Credit Applied field, and the Total payment should be US $0.00.
4. Tap Save and close.

Welcome to the Community, @pat114. Let me guide you how to enter a vendor credit in QuickBooks Online (QBO).

To start, you'll need to record a vendor credit and ensure it is applied to the expense account. Next, enter a bank deposit from the refund check you'll receive, and connect both transactions using the Pay Bills feature. I'll walk you through the steps.

First, let's input a vendor credit by following these steps:

1. Click on the + New button and then choose Vendor credit.
2. Select the appropriate vendor from the drop-down menu.
3. Choose either Category details or Item details, based on your purchase recording preference.
4. Click Save and close.

Next, you'll need to record a bank deposit for the refund check:

1. Click the + New button and select Bank Deposit.
2. Choose the correct credit card account where the refund was received.
3. In the Add funds to this deposit section, complete the following fields:
   *Received from: Choose the vendor who provided the refund.
   *Account: Select Accounts Payable. It's important to choose Accounts Payable here to link the refund with the vendor credit. This might seem unusual, but it's the correct approach.
   *Payment method: Specify the method your vendor used for the refund.
   *Amount: Input the refund amount.
4. Click Save and close.

After recording the bank deposit, you can link it to the vendor credit using the Pay Bills to maintain accurate vendor expenses.

1. Click the + New button, then select Pay Bills.
2. Select the bank deposit you previously created. You'll notice the amount of the vendor credit displayed in the Credit Applied field, and the Total Payment should show $0.00.
3. Click Save and close.

For more detailed guidance on this process, you can refer to this article: Enter vendor credits and refunds in QuickBooks Online.

Additionally, you might can access this article to learn how to view transactions with your vendors in QuickBooks Online: View vendor transactions.

Moreover, we have a great avenue that can help your bookkeeping workflow. You can check our QuickBooks Live Expert Assisted. It's an additional service that will help you keep your business organized.

You can always tap me if you have additional questions about managing your vendor's credit in QBO. Take the best care always and have a wonderful weekend ahead!