How to reverse prepayments from balance sheet for current year. Bills already been paid last year.

Hello there, @pnsaras.

I've got some insights to share on how you can reverse the prepayments from your balance sheet for the current year.

You can create a Journal Entry to reverse the prepayment from your balance sheet. In doing this, make sure that you've selected the correct account to be debited and credited. 

However, to ensure the best course of action for your business, I recommend consulting your accountant. They'll guide you on what are the accounts to be affected in this process and provide you instructions on what to do if your books were closed already.

Here are some links that will give you complete details on how to generate a journal entry and on how to reverse it too:

• Learn how to record journal entries in QuickBooks Online
• Learn how to reverse or delete a journal entry in QuickBooks Online

Know that you can always get back to me if there's anything else that you need. I'd be pleased to help. Have lovely day!