I have an outstanding credit note on a supplier but there is not invoice it relates to. The supplier has paid the amount into our bank and i need to know how to clear it

We understand the importance of efficiently managing your financial transactions, @nicola12. We are here to assist you in resolving this matter.

You can enter a supplier credit. This makes sure the credit hits the expense account you use for this supplier.
 

1. Click + New and select Supplier credit.
2. In the Supplier dropdown, select your supplier.
3. When recording purchases with this supplier, enter either the Category details or Item details. This implies the category, product, or service for which you're receiving a credit.
4. Hit Save and close.

Once you have entered the supplier credit, the next step is to deposit the money received from the supplier. Here's how you can do it:

1. Click + New and select Bank deposit.
2. In the Account dropdown menu, select the account where you got the refund.
3. In the Add funds to this deposit section, first, fill out the Received from field by selecting the supplier who gave you a refund. Then, select Accounts Payable in the Account field to properly tie the refund to the supplier credit. Next, enter the Payment method your supplier used to refund you in the appropriate field. Finally, enter the amount of your refund in the Amount field.
4. Hit Save and close.

Next, is to use Pay Bills to connect the bank deposit to the supplier credit. Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your supplier expenses accurate.
 

1. Click + New and select Pay bills.
2. After creating a bank deposit, select it and check the Credit Applied field to see the amount of the supplier credit. The Total payment should be 0.00.
3. Hit Save and close.

However, if your supplier pays with a credit card, you can refer to this article for the steps, details, and information: Enter supplier credits and refunds in QuickBooks Online

For future reference, you can refer to this article if you want to refund a customer in QuickBooks Online (QBO): Record a customer refund in QuickBooks Online

Whenever you have further questions about credit notes in QBO, I'm here to assist you. Kindly utilize the reply button below to enter any queries you may have.