reverse transactions for receiving incorrect amount

I have a PO that is now closed for qty 400, i originally received qty400 in the system, then later realized this and did a correction for qty-64 because i physically only received 336. this corrected the inventory side, even though i still have 64 waiting to be received.  Also an invoice has been paid for qty 400.  We are no longer going to be doing any business with this supplier, so we will not be getting any more of these parts delivered.  What options do i have to correct this issue?  

Thanks

Kenny