KhimG, thank you very much for your instructions (11/29/18).  They were clear and step by step.  I have been using the community as a help resource for 7 years and have seen many good and bad explanations.  Anyone looking to understand the complexities of a Vendor credit does not need a lesson in Undeposited funds nor should they need to be a professional account to understand how to use a QB item.  I was able to understand your instructions, follow them and then apply them to a case where a vendor gave a credit, deducted a bill and then wrote us a check all in one transaction.  Thank you.