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Reverse a vendor write-off

The vendor invoice was accidentally written off in vendor payments, and you want to restore it.

Resolution:

1. Go to Manage > Vendor Invoice > Existing tab and edit the vendor invoice that was written off.
2. Note the account(s) in the account column and the cost amount to each account.
3. Create a new vendor invoice with the same vendor and vendor invoice amount.
   • The invoice date should be the same as the write-off date.
   • Enter the invoice amount in the cost column and choose your vendor write-off account.
   • Now you can pay the invoice.
     Note: You can verify your vendor write-off account by going to Company > Preferences > Income Statement Accounts tab.
4. Paying the new vendor invoice will create a cash basis entry to the vendor write-off account, so you will need to reverse this with a journal entry.
5. Verify the reversal of the vendor write-off in the ledger report for both accrual and cash basis is now correct.  If the cash basis is still showing the vendor write off is not reversed apply steps 6-7.
6. Go to Manage > Journal Entries and create a new journal entry with same date as the pay date of the vendor invoice.
   • Make sure you select cash as the basis.
   • Credit the vendor write-off account and debit the expense account(s) and the amounts you noted in step 2.
7. Verify the reversal of the vendor write-off in the ledger report for both accrual and cash basis is now correct.