How do I reconcile a bill that was refunded in error? I now have a payment received and spent showing in the banking window that should cancel each other out ?

Thanks for the details you've given, @info368.

I'd be happy to help you with this getting this issue sorted out so you can reconcile your account successfully.

To begin with, you'll need to create a bank deposit to record the refund that was mistakenly sent from your vendor. This way, the refund that received will be removed from your banking page. 

To do that:

1. At the top menu, click Create menu (+).
2. Select on Bank Deposit.
3. In the Bank Deposit window, go to the Add New Deposit section.
4. Under the Receive From column, choose the supplier name.
5. Under the Account column, choose Accounts Payable, as the affected account.
6. Enter the refund amount.
7. Click Save and close.

For more details about handling suppliers' refunds in QuickBooks Online, you may check out this article: Handle supplier credits and refunds.

Once done, you can now start reconciling your account. I've included here some reference that can help you in this process:

• Reconcile hub
• How to reconcile a bank account and common troubleshooting tips

There you have it, info368.

You can always get back to me should you have further questions about this or anything concerning QuickBooks. I'll be around to help. Take care!