Make note of the income account used on the invoice that you need to get rid of
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)
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
