Hi there, @Kristen_DBS. 

You can create a vendor credit in QuickBooks Online. You may use it to deduct your payment when paying a contractor's bill. Here's how:

1. Click the + New icon and select Vendor credit.
2. In the Vendor dropdown, choose your vendor.
3. Depending on how you record purchases with this vendor, enter the Category details or Item details. 
4. Select Save and close.

For more references, here are articles to help you track all money you've paid to a vendor for a particular date range:

• Run a report with vendor totals.
• What is the difference between bills, cheques, and expenses?
• How do I handle vendor credits and refunds? 

Let me know if you have other questions about QuickBooks. I'll be right here to help you out. Have a great day.