Quickbooks Desktop

When I do this there is still a negative balance towards the Vendor. I don't understand how adding a credit then paying the "bill" balances the account. The bill pmt- check shows a $0.00 debit twice and does not solve the issue.

Received a bill for a Vendor for a service we later decided we did not want to use but we had already paid the bill via check. So the Vendors balance was $0.00 because it all washed out but when adding the check we received back from the vendor and creating a deposit it now credits a balance. 

What am I doing wrong??