Hello insurance110,

I can help you make sure that you process that refund check from the vendor.

We can easily resolve this because you are actually on the right track! You just need to add a few more steps to what you are already did in QuickBooks Online.

When you create the deposit, instead of creating a deposit just for that vendor, you can add all the details for your actual deposit transaction. You just need to make sure that you enter the correct information in each column (RECEIVED FROM, ACCOUNT, AMOUNT, etc.) for each line item. I've attached a screenshot for your reference.

This allows you to record the actual deposit transaction in QuickBooks Online, so that you can match it to your downloaded transaction. Not only that, but you can still link the deposit to the vendor credit to zero out the balance of this vendor.

That's it! You will be all set after recording the deposit.

I'm happy that I was able to help you out. You are always welcome to reach out to me again if you have any other questions.