How to cancel invoices that have already been written off through a journal entry?

Thank you for the detailed info, Ralph.

I'll be here helping you handle your uncollectible invoice so it won't appear in the Accounts Receivable (AR) Aging report.

Canceling the invoice won't fix the issue and damage your book balance. However, we can Write off the transaction using a Journal Entry (JE). Let's just ensure to place it into the correct accounts.

When creating a JE, place the Accounts Receivable as Credit (Cr) and the uncollectible invoice as Bad Debt as Debit (Dr). Ensure that you set up Bad Debt as an Expense account. You can read this article to learn more: Write off bad debt in QuickBooks Desktop.

Then, enter the Date correctly and choose the customer assigned to that invoice

Also, I recommend contacting your accountant to guide you in recording this transaction. If your JE setup is like this, let's move on to the next process.

Now, let's return to your invoice and Receive payment to apply the JE. Here's how:

1. From the Customers tab, click Customer Center.
2. Select the customer with the uncollectible invoice.
3. In the Customer Information section, choose the invoice to open.
4. From there, move your mouse to the Receive Payment tab.
5. On the Customer payment page, tick the box beside the invoice. Then, click the Apply Credits below.
6. A prompt will show that will show the JE. Put a checkmark in the box beside it to link it to the invoice located below the Available Credits table. Then, Done.
7. Click Save & Close.
   

You can read this article if you want to save your customized report: Create, access, and modify memorized reports.

Leave a reply below if you have additional questions about managing your transaction report. I'll be willing to help. Keep safe, and have a good one.