Vendor Credits received thru ACH refund in our bank

I have throughly read all posts about how to apply a vendor credit.  I entered the vendor credit but where it says find bills or invoices for which you received the credit nothing appears like that on the vendor credit screen entry screen.  If I just enter the credit memo and save it does show up under vendor as unapplied. I made my deposit for accounts payable and selected vendor as well but when I go to link vendor credit and bank deposit using pay bills the bank deposit does not show and I see no field for credit applied. I guess I am missing a step somewhere. Please advise.