NOTE: If you decide to affect prior year, you will also need to open the archive to follow the same steps in order for the audit trail to match up.

IMPORTANT: This resolution is for AP invoices posted to prior year/period zero. Do not use this resolution if you haven't archived and the fiscal year is still available for posting in the current company.

1. Open a new (blank) 4-2 Payable Invoices/Credits record.
2. Click Edit, Period.
3. Double-click 0-Prior Year (ONLY if the accountant is okay with affecting financials for that year. Otherwise, use current period.)
4. Click Yes to the message, "You have chosen to change the posting period to 0, Prior Year. Are you sure you want this period?"
5. In the Invoice# box, type the check number of the check you are reversing.
6. In the Invoice Date box, type the date of the original check.
7. In the Vendor box, type the vendor number.
8. In the Description box, type a description.
9. In the Due Date box, type the original invoice due date.
10. In the Disc Date box, type the original discount date.
11. From the Type menu, select 2-Memo.
    Note: If you are using an Order# or Contract#, remove it from this memo. Because it is a memo, the amount will not be included in a subcontract audit, but it will show up on the subcontract summary report unless you remove it.
12. In the grid:
    • In the Description box, enter a description.
    • In the Quantity box, type 1.
    • In the Price box, type the amount of the check you are reversing.
    • In the Account box, enter the checking account to which the original check was posted.
13. Click File, Save. NOTE: If you used the prior year, the following message will appear: "Reminder: You have selected to post to Period 0 - Prior Year. This option will adjust beginning balances in these books but will not post to your archive company; you need to manually update your archive to reflect these changes, void the item in your archive."
14. If you are reissuing a check for the vendor, set the new invoice you just created to pay and print a new check through 4-3-1. If you want the check to also show original period, you would use period zero as in Step 3. Again, only if the accountant is okay with this. If you are voiding the original invoice, see Related resource below: How do I reverse an Accounts Payable (AP) invoice from the prior year?

Next Steps:

• If you need to repay this invoice, then you would post a payment against the invoice you just created in the steps above
• If you need to also reverse the prior invoice that the check you reversed was applied against, then follow the steps in the linked article below entitled "How do I reverse an Accounts Payable (AP) invoice from the prior year?". You would then apply the credit invoice you create against the invoice you created in the steps above.