You’ve come to the right place for assistance with your reporting needs, Clio. I'm eager to guide you and resolve the credit note concern to ensure everything goes smoothly.

Since the vendor overpaid you, you need to record this as supplier credit and then apply this to their future bills. This is the perfect way to close the vendor credit.

Here's how:

1. First, click on + New and then select Supplier credit.
2. In the Supplier dropdown, choose your supplier.
3. Depending on how you manage purchases with this supplier, you’ll need to fill in either the Category or Item details.
4. Make sure to select Save and Close when you finish.

Afterward, you should create a bank deposit and record the amount in the Accounts Payable category.

Here's how:

1. Start by selecting + New, then go for Bank deposit.
2. In the Account dropdown, choose the account that got the refund. In the Add funds to this deposit area.
3. For Received from, select the supplier who refunded you.
4. In the Account section, pick Accounts Payable to connect the refund to the supplier credit.
5. For the Payment method, type in how the supplier refunded you. Enter the refund amount and click Save and Close.

After that, let's use the Pay Bills feature to connect the bank deposit with the supplier credit.

1. Press the + New and click the Pay bills.
2. Pick the bank deposit you just made. You’ll find the supplier credit amount listed in the Credit Applied area. The Total payment should read $0.00.
3. Choose Save and Close.

Once done, you can pair the bank transaction with the manually entered bank deposit using the Find Match tool in QuickBooks Online.

Additionally, you can check out these articles for tips on how to gather financial data with your supplier totals and manage any outstanding balances you need to settle:

• Manage outstanding balances for customers and suppliers in QuickBooks Online
• Use reports to track cash flow in QuickBooks Online

Come back anytime if you have more questions about vendor transactions, Clio. I’m here to make sure you get the assistance you deserve. I'll reply to you in no time.