Vendor issued check for credit being held on account. How do you book this?

A vendor issued a check for a credit we had on account.  How do we book this?  Just enter it in as a payable to $0 the account?
 

Hi Rana,
That's the way I'd do it along with posting the deposit to the same account and period as the invoice.  Then run a pdf check to "pay" the zero check so the invoice and credit no longer show as outstanding.
Jon