writte off invoices of closed years

We can create a Credit memo to reverse the charge and create a new invoice with the correct information in the current open period.

Follow these steps to create one:

1. Select +Create and choose Credit memo.
2. Choose the customer's name from the dropdown.
3. Enter the details, such as the current date and amount, for 2026.
4. Under the Product/Service column, select Item A.
5. Enter the quantity and the rate from the original invoice.
6. Click Save and close.

Then, create a new correct invoice with the correct item. This records that Item B left your inventory, correcting your stock levels, and leaves an open balance for the customer to pay.

After that, let's clear the balances by following these steps:
 

1. Select +Create and choose Receive Payment.
2. Select the customer.
3. If the 2025 invoice was unpaid: Check the box next to the 2025 invoice and the 2026 Credit Memo. This links them and zeros out the old balance.
4. If the 2025 invoice was already paid: Check the box next to the 2026 invoice and the 2026 Credit Memo. This links them so the customer doesn't show a new balance due.
5. Ensure the Amount Received is $0.00 and click Save and close.

Please let us know if you have further questions or concerns. We'd be glad to help.