You can cancel a bill of exchange that was received as an incoming payment but has not yet been deposited, or has been deposited as postdated. To view the status of a bill of exchange, select the bill of exchange in the Bill of Exchange Register window, and view the Status field.
In the Bill of Exchange Management window, select the checkbox in the table row of the bill of exchange that you want to cancel, then in the Move To dropdown list, select Canceled.
The bill of exchange is transferred to the Canceled drawer in the Bill of Exchange Management window.
The incoming payment is canceled.
The A/R Invoice can be paid by other payment means.
A reverse journal entry is recorded.