Below are the steps on how to record the received check:
1. Go to Transactions > Bank > Make Deposits.
2. Under the Deposits tab > Other Deposits subtab, enter the folowing:
--- Set Name of the Vendor
--- Enter the Amount of the check
--- Enter the Account involved in the refund made (i.e. Accounts Payable).
3. Make sure the correct accounts are set, then hit the Save button.
Note: To reverse the impact of the Vendor Bill that was previously entered, a Vendor Bill Credit needs to be created. Then, apply the Vendor Bill Credit and the Deposit record (make sure they post under the same A/P Account) through the Pay Bills section to offset the balance.