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Hi sarah-coolabode-,
Welcome to Community! It's important that you're able to accomplish your bookkeeping goals in QuickBooks Online, with confidence. Making any changes to previously recorded transactions can have a negative impact on other areas of your books. In this situation, I encourage you to reach out to an accounting professional for their expertise and best course of action. If you don't have an accountant, we can help you locate a ProAdvisor in your local area.
Feel free to reach out again, with other questions. We'd be glad to help!
When you void the invoice, QuickBooks will automatically create a corresponding credit memo to offset the invoice. Let's go through an example of voiding an invoice in QuickBooks and how it would be recorded.
Example:
For this example, we'll assume you're using the accrual accounting method and that the invoice contains GST. We'll also assume a simplified scenario.
Step 1: The Original Invoice
Step 2: Voiding the Invoice in May
Now, let's see the impact on your financial records after voiding the invoice:
Income Statement (for May):
Account | Before Voiding | After Voiding |
Sales Income | $1,000 | $0 |
Total Revenue | $1,000 | $0 |
Balance Sheet (as of the end of May):
Account | Before Voiding | After Voiding |
Accounts Receivable | $1,100 | $0 |
GST Payable | $100 | $0 |
Remember to keep detailed records of this transaction for your records and potential tax purposes. The specific accounts and amounts may vary depending on your chart of accounts and the way your QuickBooks is set up, so it's essential to consult with a professional to ensure the proper handling of such transactions in your specific situation.
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