QB Issue Resolution:

It sounds like you have entered the credit.

Make a deposit with the refund cheque. Use the vendor name and accounts payable as the account.

Then go to Pay Bills. The deposit will show as a bill to be paid and you have your credit to apply.

Delete the Journal Entry, as it is not required.

Resolution for Issue 'Credit cheque from Vendor' available: Yes (Solved).
Source: Intuit Community forum.

Credit cheque from Vendor: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for accounts payablereceivable (canada)
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!

Error Recovery for accounts payablereceivable (canada) [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.

Get 50% off Quickbooks Online

Click Here for 50% off!

Additional Support Options: