How to settle prepayment for returned amount from Vendor?

Summary:

Content (please ensure you mask any confidential information):

We have a prepaid invoice for our Vendor, that we have paid. The vendor sent us back a check because they could not get the product. We have $2,583.90 available in the system that we need to reverse/apply. What is the best way to do this?

Version (include the version you are using, if applicable):

24B (11.13.24.04.0)

Code Snippet (add any code snippets that support your topic, if applicable):