You have posted a bill of exchange payment without clearing any open items. The bill of exchange has been posted as a payment on account and has not yet been deposited at a bank for discounting. In this case, you reverse the bill of exchange payment with a credit entry. You do not need to post a new receivable because you have not cleared the original receivable.

These entries are shown in the following figure:

1. This example shows the following entries: The open item is shown in the customer account and the reconciliation account "Receivables from goods and services".
2. You receive a bill of exchange payment, which you post as a payment on account to the customer account. The system posts to the corresponding reconciliation account automatically.

To reverse the bill of exchange payment before deposit:

3. Make a credit entry to the customer account. This entry reverses the payment. The system posts automatically to the special G/L account for bills of exchange receivable. The offsetting entry to the customer account reverses the incoming payment.

In this case, you should reverse the bill of exchange payment as follows:

You can reverse a document if it contains no cleared items. If items are already cleared, you must perform the reverse posting manually. You can use the reverse bill of exchange as a sample document and thereby have reverse postings created by the system.

For further details about reversing entries, see FI - Document Posting.