Thank you for your prompt reply.  This is for a contractor that I pay by check, but occasionally he receives a payment on my behalf.  We would like to record this amount due from the contractor, to be deducted from his next check.  I did create a Vendor Credit and when I went to write this contractor a check, the Vendor credit pops up on the right (which  is what i was hoping for), I click it to add and it gives me a message: You cannot add a credit for a vendor without any open bills. :/