Hi @SBCondor,

Let me jump in on this thread to share some insights about the process of recording a vendor refund.

Regardless if you deposited to your bank account first or recorded it in your QuickBooks Online company then deposited the check to your bank account, it would still be fine. As long as you deposit it in the correct bank account, then your records will remain accurate.

With regards to the Undeposited Funds account, it's normal operation is holding the payments you received that you haven't deposited to a bank account yet. This explains why it doesn't appear as an option when you do a bank deposit.

You'll find this article useful since it has the steps on how you can enter a refund from a vendor. The process is divided into 3 parts which are, enter a vendor credit, deposit the money you got from the refund, then using Pay Bills to connect the bank deposit to the vendor credit.

You're always welcome to post in the comments below if you have other questions. I'll be sure to get back to you.