Thank you for the reply DivineMercy_N

I followed up on your recommendation yesterday and spoke twice with Support Team members. Both individuals were very helpful.

The conclusion reached after redoing everything again is that there may be a "software glitch".

But before I request Intuit software engineers to take a look, I would like to present here once again (with enclosed png files) how the existing data entries are showing up in the various reports so that maybe someone here in the community can perhaps "catch" an error in the actual data entries.

The attached files present the following information:

1. P&L Report - shows the two transactions showing up on the Unapplied Cash Bill Payment Expense line. Important Note - please notice this is the P&L by Class Report. If the standard P&L Report were run these two transactions would not appear (unless you clicked on the 0.00 Total).

2. Deposit - this window appears if you click on the -486.00 in Class column 3.

3. Credit - this window appears if you click on the 486.00 in Class column 8.

4. Accounts Payable - this view shows / confirms that the Deposit and Vendor Credit have been properly linked.

5. Vendor Transaction Detail Report - and finally If I understand what this report represents (which is a record the transactions that have been "routed through" the A/P account. This report may provide a "hint" of where the "software glitch" is occurring. Please notice that in this report both the Deposit and the Vendor credit are showing as negative values. However in all the other reports / views presented above, there is a +486.00 and a -486.00. That is the only "oddity" I've been able to discern.

If anyone who cares to try to tackle this problem would like to see any other details regarding the associated transactions. please drop a note here and I will follow up.

Hmm - apparently only one file can be uploaded per post?