How do input a suppliers credit note and receive the money

Hello Margaret875,

There are a few things we can do to record the refunds from suppliers. We can create a supplier credit, bank deposit, and link the two transactions.

Creating a supplier credit is a way of recording the refund. 

1. Click the + New button and select Supplier credit.
2. Enter the Supplier and the Payment date (refund date).
3. Go to the Category details section and enter the expense account in the CATEGORY column.
4. Enter the refund amount in the AMOUNT column.
5. Click Save and Close.

Bank deposit will represent that the refund already affects your bank.

1. Click the + New button and select Bank deposit.
2. Enter the bank account in the Account field.
3. Enter the deposit date and go to the Add funds to this deposit section.
4. Select the supplier under the RECEIVED FROM column.
5. Select Creditors in the ACCOUNT column.
6. Enter the refund amount in the AMOUNT column.
7. Click Save and close.

Lastly, we can create an Expense or Cheque to link the two transactions.

1. Click the + New button and select Expense or Cheque.
2. Select the supplier in the Payee field and enter the Payment account (bank account).
3. Enter the Payment date.
4. On the right side of the Expense or Cheque window, the Add to Expense or Cheque drawer will appear.
   Click Add on the Deposit and the Supplier Credit.
5. The Deposit will appear under the Outstanding Transactions section, while the Supplier Credit will show under the Credits section.
   Ensure the AMOUNT PAID in the upper-right corner is 0.00.
6. Click Save and close.

You might also find this article helpful: Record a customer refund or supplier refund in QuickBooks Online.

Those are the steps to keep your transactions in line. I know you can do this with ease. Have a great day!