Canceling an invoice in another fiscal year

Good day, @Tremblant.

I'll help you clear this transaction in QuickBooks Desktop (QBDT). 

If you're referring to deleting or voiding the invoice in another fiscal year, we can follow these quick easy steps to remove them:

1. Go to Customers menu and select Customer Center.
2. Click the name of the customer and look for the invoice.
3. Double-click the transaction to open, then select the Delete drop-down box beside Save.
4. Click Delete or Void and select OK to confirm.

In case the books for this fiscal year was already closed, please know that doing these steps will affect your financial reports. 

For invoices that becomes uncollectible, you can to record them as a bad debt and write them off. This ensures your accounts receivable and net income stay up-to-date. 

I'd also recommend reaching out to your accountant before taking these steps. That way, we can ensure that your books are accurate. 

If you're referring to something else or have follow up questions, please share it with us. We'll be here to assist you further. Have a nice day!

1. Make note of the income account used on the invoice that you need to get rid of
2. Create a JE with the current date (or you could use 12/31 if your books haven’t been released to your accountant for tax prep) DR the income account used on the invoice, and CR AR (don’t forget to add a memo that explains what you’re doing)
3. Go to the Invoice that you need to get rid of and click on Apply Credits. Once you apply the credit created from your JE, the invoice will show paid. The income recognized in the prior year (for accrual basis) will remain in tact and your accountant won’t need to create any AJE’s.

Notes:

• If there is more than one line item on your invoice, you’ll need to DR each income acct in the JE
• If the invoice that you are getting rid of is for inventory items, you hopefully will have already adjusted inventory on the last YE count