Hi Sheila, question so how did the bank reconciliation balance if the receipt was not entered?  It should of shown on your bank statement but not balanced if the receipt was not entered?  Was there an entry made to balance to the bank statement maybe?

Hi Marj, sorry, I didn't see this until now.  Yes It was manually entered to balance the statement.  Because the customer invoice was not received through the receipts journal, its still showing outstanding. It was not easy to find as it had a discount invoice as well so we couldn't pin point which customer that deposit should have been for.  I am tempted to go and reverse the GL and receive it, but it's back in June and I an nervous because we are in a new year.  But I need to receive it to get it removed from the system.  Any suggestions would be appreciated.  Thank you.

You say you have started a new year.  Has the books been closed for the old year?  If they have been closed then you will have to fix it in your new year. You could create a new journal in the new year reversing what you did in the old year.