So Inv1 is dated in October 2015 it sounds like. You would post Inv1VOID dated January 1, 2016, then go to payments, set your payment method as cash on January 1, 2016, select the invoice and the void invoice for a net zero payment to clear those invoices from your outstanding receivables. Any A/R reports dated after January 1, 2016 should reflect the zero balance for that client. However, until the reversing entry 'pays' the outstanding invoice in January, the original $75 is going to show on the books for the rest of 2015.

So Inv1 is dated in October 2015 it sounds like. You would post Inv1VOID dated January 1, 2016, then go to payments, set your payment method as cash on January 1, 2016, select the invoice and the void invoice for a net zero payment to clear those invoices from your outstanding receivables. Any A/R reports dated after January 1, 2016 should reflect the zero balance for that client. However, until the reversing entry 'pays' the outstanding invoice in January, the original $75 is going to show on the books for the rest of 2015.

Hi Phughes, could you please clarify what you mean by : select the invoice and the void invoice for a net zero payment to clear those invoices from your outstanding receivables.
Thank you!

Hi ams01. When you open your payments journal, you should see one line at $75 for the Inv01 and one line at -$75 for the Inv01VOID. If you click on the Inv01 the amount of $75 should populate in the far right column for payment amount (if it doesn't then you can manually enter the amount). Then click on Inv01VOID or manually enter the -$75 on that line in the payment amount field. The payment amount should then read as zero, and you can post that after confirming your payment method and posting date :)

I'll give it a go, thanks again :)