As my title states, my vendor charged our credit card $745. Immediately Refunded $345. I've now a few times to process correctly and the process does not seem to work.

Things I've tried.

What I would normally think to do:  Bill was entered for $400, click on credit card charge of $745 apply to Bill and add Vendor Refund for the $345.....Does not work.

Apply Payment of $745 to Bill of $400, it does work and it creates a $345 Vendor Credit. However if I go to the $345 refund in banking and select vendor refund, there is no technical credit note to select and it will not let me select the vendor credit in the account.  If I create the vendor credit however there is now too much of a credit.

Please help as this is getting frustrating!