create a credit memo from the vendor for the amount forgiven and apply the credit to the bill.  then pay the balance due.

Resolution for 'bill forgiven issue: 'how to record a bill forgiven by a vendor' available: Yes.

The bill forgiven 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 bill forgiven issue yourself by looking for a resolution described in the article. If it is a complex bill forgiven issue or you are unable to solve the issue, you may contact us by clicking here or by using other bill forgiven support options.

For more information about resolving issues related to bill forgiven in Quickbooks/QBO or to get support for the issue 'how to record a bill forgiven by a vendor', click the link below: