How do you post a refund check from a vendor? The missing manual doesn't discuss it at all. And, Intuit's answer doesn't make any sense. That is, the solution states to create an accounts payable account and apply a credit using Vendors, pay bills. Here is the link I cannot understand:
The QuickBooks Missing Manual does cover vendor credits. The section Recording Vendor Credits is in Chapter 9, Paying for Expenses. It's page 242 in the 2010 edition of the book.
1. When you receive a refund check from a vendor, the first thing you do is record a credit. (Choose Vendor-->Enter Bills as if you are going to create a vendor bill.)
2. Select the Credit option.
3. Then, you can specify the items for which you are receiving credit. CLick Save & Close. Now you have a vendor credit. If you look at the Accounts Payable account, you'll see a transaction with the amount of the credit in the Paid column, which reduces the amount you owe to the vendor.
4. Choose Banking --> Make Deposits. If the Payments to DEposit window opens showing actual deposits, click Cancel.
5. In the Make Deposits window, in the Deposit TO box, choose the account into which you want to deposit the refund. Fill in Vendor Name in the first blank Received From cell. In the "From Account" cell, choose Accounts Payable (where the credit is sitting) and fill in the amount. Click Save & Close. Now you have the refund recorded but it isn't yet linked to the vendor credit.
6. Now, to connect the deposit and the credit, you pay the bill that QB created with the vendor credit on your books. Choose Vendors --> Pay Bills. Turn on the check box next to the credit you just created. If you see a message that says a check will not be created because the bill is paid entirely by credits, click OK. QB automatically applies the credit to pay the bill so the credit has been applied.
(In earlier versions of QB, below the table in the Discount & Credit Information for Highlighted Bill section, click Set Credits. You can turn on the checkbox for the credit and click Done.) Close the Pay Bills window.
Author, QuickBooks 2010: The Missing Manual