You can cancel prepayments if they have not been paid or applied to invoices. To cancel an applied prepayment, you must first unapply the prepayment and void the payment document that paid the prepayment.

To cancel an unapplied prepayment:

1. In the Invoices window query and select the prepayment.

2. Choose the Actions button and select Cancel Invoices.

   Payables automatically creates reversing distributions for the prepayment and reduces the prepayment amount to zero.

To cancel an applied prepayment:

1. Fully unapply the prepayment. See: Unapplying Prepayments.

2. Void the payment document used to pay the prepayment. See: Voiding Payments.

3. Cancel the prepayment (see above, To cancel an unapplied prepayment).