Need to remove prier year large A/R credit related to intercompany transaction

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@lwinthrop 

Your two posts on this situation seem to contradict.  Are these the same or two different situations?  In your other post, you mentioned the customer sent an ACH payment to TX Co. for a LA Co. invoice.  However, in this post, you mentioned that LA Co. submitted a payment to TX Co.  Why did LA Co. make a payment to TX Co. if the customer paid TX Co. for a LA Co. invoice?  TX Co. should have owed the money to LA Co.

Without knowing how the invoice was closed in LA Co. based on the information provided in your previous post, or why TX Co. invoiced LA Co. based on the information in this post, the questions are tough to answer.     

The 2 posts are not related to each other, they are 2 separate issues. So please disregard the other post because it does not apply to this one.

Our home TX office sent an invoice 2022 to our LA office. Someone (this all happened before I started at the company) deleted the TX invoice on the TX side, but left the "bill" on the LA side. 

LA paid the "bill" 2023 to TX but I have nothing to apply it to on the TX side. It is just sitting as a credit on the TX A/R to a company that is closed, i.e. LA office. We need to fix this in 2024 without impacting any bank reconciliations and balance sheet for 2023.

I cannot create an invoice in 2024 without creating a $25,000.00 revenue stream that doesn't exist.

@lwinthrop 

"I cannot create an invoice in 2024 without creating a $25,000.00 revenue stream that doesn't exist."

If the $25K TX invoice was deleted and the payment was posted to A/R (debit bank account, credit A/R), then how and when did the TX Co. record the $25K in revenue?  With no invoice and a deposit posted to A/R, no revenue would be recorded.  If the invoice was deleted after the revenue was reported for book/tax purposes, then you can debit A/R and credit Retained Earnings in 2024.  Then, apply the A/R credit to the "invoice" created by the journal entry.