I know accounting pretty well and have used QuickBooks extensively.  But the below baffles me in Business Works.  We are using version 2013 SP8.

My problem is how to process a check received from a vendor as a refund.  That is, accept the cash and lower the net amount of the expense item involved.  In my current problem, an insurance company refunded part of the premium. 

In simple accounting I would just debit cash (checking account) and credit the expense item which was overpaid (and for which I now have a partial refund).

I apparently cannot just make a deposit and tell Business Works that I was the offsetting credit to be whatever expense is involved. insurance in this case.
I apparently cannot go to vendors, reduce the amount owed and use the checking account as the offset.

All of this seems complicated by the fact that reconciling bank statements had its own oddities, including the fact that just a straight journal entry to cash does not show up in the bank reconciliation process.  Thus, taking away the simple solution of making a simple general journal entry.

I have the manuals that came with the program, but they seem to be useless in looking this up, as does the help menu in the program.

In order to just make the deposit, I included the refund check as an "other" deposit item, which the program accepted.  But that has also created problems I am not sure how to correct.

If anyone knows this program well enough to help me, I would sure appreciate it.

I would like to start with how I should have processed the refund check. 

Thank you.

Robert