I have a situation where the user has created a PO in Legal Entity A and has applied a pre-payment (invoiced, paid) to it. The pre-payment check has been paid and bank reconciled. i.e the money is already out of the bank account.
At this point now, the user wants to reverse/cancel everything from this legal entity because the data actually belongs to another legal entity. I see that the following transactions have taken place so far:
1. prepayment invoice
Cr. Accounts Payable
Dr Prepaid account
2. prepayment check
Dr. Acct payable
Cr bank account
1) above ofcourse has corresponding entries in the subledger journal. The PO above is still in open status and has not been received or invoiced - the user plans to create a new PO on the new legal entity.
can anyone please suggest what would be my options to either cancel everything from this legal entity and/or move stuff to another legal entity ?