How to Close liabilities
Summary
How to close liabilitiesContent
Example : We owe a supplier £200 which is an open liability. However, they owe us £200. They have not provided a credit note. So we close the liability of the outstanding unpaid invoice which reverses the accounting entries and effectively closes down the invoice so it will not be paid in the future.
What is the recommended approach for this?
Remember we cannot reverse an invoice in certain circumstances (such as if it is matched to a PO).
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