Bank refunded payment to Vendor as account details were incorrect

Hi there, @Hjamben12. I'm here to help you correct the transaction in your account and guide you in recording payments.

You can consider creating a bank deposit that will only affect the accounts payable of the vendor. This way, you can proceed to match those in your transactions.
 

1. Click +New.
2. Select Bank deposit.
3. Choose the bank account.
4. In the Add funds to this deposit section, fill in the following fields.
   • Received from: Select or enter the vendor name
   • Account: Select the Accounts Payable account.
   • Amount: Enter the cheque amount.
5. Select Save and close.

Then, let's link the deposit to the vendor's credit memo with a "zero dollar" payment.
 

1. Click +New.
2. Select Pay Bills.
   
3. Select the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be $0.00.
4. 
5. Select Save and close.
    

For additional details on entering a credit from a vendor, feel free to read this article: Record a customer refund or supplier refund in QuickBooks Online.

Additionally, I'll be leaving these transactions to help you in the future:
 

• Categorise and match online bank transactions in QuickBooks Online
• Memorise reports in QuickBooks Online
   

Don't hesitate to get back to me if you have further clarifications about creating a bank deposit that will only affect the accounts payable of the vendor. I'll be more than happy to provide additional assistance. Keep safe!