I over paid a supplier and want to record it but the supplier has sent it back how do i match up the payments.the account is showing a credit but cant link it ?

Hello Accounts-Sudbury, 

Welcome to the Community page, 

So what you need to do is record the actual payment and close the bill off and then follow the steps as below to finish off recording it in Quickbooks. 

Supplier refund:-

1. Go to the + icon then select Supplier credit. 

2. Choose the correct date, supplier and amount with the VAT (if required) Save.

3. Next go the + icon again and create a bank deposit, this is for the amount (bank) the refund has gone into. 

4. Select the amount, date and supplier on the deposit. Making sure the line item is for the creditors account and making sure to choose NO VAT. 

5. Then go to the cheque and add the deposit and supplier credit and then match at the bank.