Refunding a payment on account

[Glenn]

Entering a credit note will not reduced the balance held on account. Credit notes are set against invoices to reduce the outstanding balance.

Please take a look here for refunding credits on account.

Refund from credit on account

We overpaid a supplier yesterday through a recurring payment with PayPal. I’ve tagged this to the supplier (to show the account in credit), but this has since been refunded. How would I tag this as a refund from the credit?