You have posted a bill of exchange payment without clearing any open items and have already deposited the bill of exchange at your 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. You must also reverse the postings for the bill of exchange usage, as shown in the following figure:

This example shows the following entries:

1. You have posted an invoice for 11,400 USD to the customer account.
2. You have posted the bill of exchange payment to the customer account and the special G/L account "Bills of exchange receivable". However, no receivable has been cleared by the bill of exchange payment. Consequently, the receivable is still shown in the reconciliation account "Receivables from goods and services" and in the customer account (see the figure above).
3. You have deposited the bill of exchange at a bank (bill of exchange usage). You have posted a debit entry for the incoming payment to the bank account and a credit entry to a bank clearing account (potential bill liability). The bill of exchange charges are automatically posted to the account for bill of exchange charges.

To reverse a bill of exchange after deposit:

4. Reverse the potential bill liability as if the due date including protest period had expired. Post a debit entry to the potential bill liability account (bank clearing account). Make the credit entry to the customer account. The system posts to the special G/L account automatically. The system posts to the special G/L account automatically.
5. The cash receipt is still shown in the bank account and the incoming payment in the customer account. You must reverse these entries. You do this by posting a credit entry to the bank account and then clearing the payment in the customer account.

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