Examples include rebates, reward incentives, refunds, reimbursements, or checks issued by a vendor to cash out an existing credit.

1. Record a Deposit of the vendor check:
   1. From the Banking menu, click Make Deposits.
   2. If the Payments to Deposit window appears, click OK.
   3. In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
   4. In the From Account drop-down, select the appropriate Accounts Payableaccount.
   5. In the Amount column, enter the actual amount of the Vendor check.
   6. Enter the remaining information in the Deposit.
   7. Click Save & Close.
2. Record a Bill Credit for the amount of the Vendor Check:
   1. From the Vendors menu, select Enter Bills.
   2. Select the Credit radio button to account for the return of goods.
   3. Enter the Vendor name.
   4. Click the Expenses Tab and enter the Accounts you would normally use for refunds.
      Note: If you are not sure which account account to select, Intuit recommends contacting your accounting professional.
   5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated.)
   6. Click Save & Close.
3. Link the Deposit to the Bill Credit:
   1. From the Vendors menu, select Pay Bills.
   2. Check the Deposit that matches the Vendor check amount.
   3. Click Set Credits and apply the Bill Credit you created earlier then click Done.
   4. Click Pay Selected Bills > Done.