Generally, something like this should not be reversed using the program's Reverse Invoice button.  By definition, this reverses the transaction on the original date.  For you this is two fiscal years back.  I don't think you want to pay your accountant to amend two tax returns to account for this invoice adjustment.

In simple terms, you wish to post a reversing invoice in the current fiscal year.  This can be done as a general journal entry or as a customer invoice.  Unfortunately, you have not indicated if the invoice is still outstanding or marked as paid.

I am going to assume it is still outstanding and the customer is not going to pay it.

I usually use the following process

1) Look up the invoice you want to reverse.

2) Store it as a recurring entry using a temporary name and usually a random frequency.

3) Recall the transaction.

4) Change all the positive quantities to negatives and all the negative quantities to positives.  If there are no quantities, do the same with the Amount column.

5) Double-check that the amounts are exactly the same but now negative and the total invoice is reversed by checking the journal entry on the Report menu before posting.  You should have a copy of the original journal entry as a comparison.

6) After you post it, then go to Receipts and pay the reversal against the original invoice.  This should result in a zero dollar entry and no journal entry (again check the Report menu to confirm).  I use the same date as the reversal invoice.  Post the Receipt.

7) Go back to the invoice data entry screen and in the Recall Recurring entries dialog, remove the temporary journal entry.

I know it is 2 years back.  This is an adjusting entry that my accountant has given me.  It was duplicated and just discovered this year.  It needs to be removed from our historical data as it is overstating our A/P.  Is there a way to do this?

I apologize as I did not read the full response.  I will try this method.  Thank you.

I apologize as I did not read the full response.  I will try this method.  Thank you.

Just translate Receipts module to Payments module so it's on the Payables side.

I would use the date the accountant gave you in the adjusting entries.

I am not understanding what is meant by translate receipts to payments module.  Would you be able to elaborate.

In my message above, I was assuming the customer/sales side and therefore referenced the Receipts module to pay the original Customer Invoice against the Customer reversal invoice.  I was just referring to the fact that you are actually referring to a Purchase and therefore you need to use the Payments module not Receipts module to record the payment of the reversal invoice against the original purchase invoice.

Thank you very much Richard.  Your thread put me thinking on the right path and I did it!!

You are welcome.

I have found over the years that a lot of bookkeeping "problems" can be solved by perspective.  First think about things in English not bookkeeping language then it is easier to figure out which module, which method, which date, etc. will solve the problem.