hi RSI,
You created prepayment from purchase order right. So you have to reverse first prepayment invoice and then reverse the payment because your prepayment is already applied against your vendor invoice.
Follow the below steps to reverse the prepayment first:
Click Accounts payable > Common > Vendors > All vendors.
1. Select the vendor for the vendor invoice that you created.
2. On the Action Pane, click Edit.
3. On the Action Pane, click the Invoice tab, and then click Reverse prepayment application.
4. In the Select the invoice to reverse the prepayments from grid, select the vendor invoices to reverse the prepayments from. In the Select prepayments to reverse grid, select the prepayments to reverse.
5. Click Reverse prepayment application.
Once you reverse the prepayment invoice, then try to reverse the payment.
