Very old invoices we want to clear

There are several ways to offset a vendor's balance in your books, @csoffice,

The clearing process, however, requires guidance from an accounting professional since it involves data from previous Fiscal years.

Your ideas are all correct. If you have agreed to forget that this invoice happened, the void option will work. Just remember that this action isn't always advisable for old or reconciled transactions because it will trigger discrepancies on the bank balance.

However, if you want to retain all the information in the program, we can use journal entries and apply them as credits to offset the payables. Here's how to enter the adjustment:

1. Go to the Company tab then pick Make General Journal Entries from the list.
2. Update the date and fill in the entry number.
3. Complete the offset adjustment then hit Save & Close.

Now, apply the journal entry to the bill payment. Follow these steps:

1. Click on Vendors then Pay Bills.
2. Pick the outstanding bill and use Set Credits.
3. Go to the Credits tab and find the available credit. Once selected, press Done.
4. Lastly, select Save & Close.

Our last option is using Discounts on the unpaid bill. See Option 2: Use Discounts to write off small amounts of this article for the complete process: Write off customer and vendor balances.

I'm also appending these articles to help you after doing the corrections from previously reconciled periods:

Fix beginning balance issues in QuickBooks Desktop.

Reconcile previously deleted and re-entered checking or credit card transactions.

Fix issues while reconciling accounts in QuickBooks Desktop.

Let me know if you have follow-up questions about this or anything else. I'm always here to help you. Have a nice day!

Thank you for the response. I think I better ask our accountant how she wants me to handle this since the invoices are so old.

Thanks again!