How Do I Enter a Vendor Credit in QBO?

In QuickBooks Online (QBO), you enter a vendor credit to record returns to vendors or refunds from vendors.

If a vendor issues a credit document, you enter a vendor credit and then apply it when you pay the vendor’s bill. If a vendor issues a refund check to you, you still enter a vendor credit, but you also enter a deposit and then link the deposit to the refund check.

Click the Create Plus (+) menu and, then choose Vendor Credit under Vendor heading.