Reverse an invoice by returning it to Unpaid status, then creating a matching Credit Note.

If the invoice is paid

1. Unallocate the payment and save it as a payment on account. See the article How to unallocate receipts or payments from an invoice.
2. Keep the payment on account, or post a refund against it.

 If you don't need the payment

1. Delete the payment from Banking when Sage does not reconcile it or include it in a tax return.
2. Use this guide to find the payment date: How to access a payment from an invoice in Accounting.
3. Use this guide to delete the bank transaction: How to delete a bank transaction.

Cancel the invoice

1. Create a Credit note from the invoice when it returns to Unpaid status.
2. Match the original details, amount, tax, and dates.
3. Use this guide for sales: Create and manage sales credit notes.
4. Use this guide for purchases: How to create and manage vendor credit notes.
5. Sage includes the reversed tax in the next tax return.