Problem: How to Cancel Deferred Expense when the service has been discontinued and the company received the refund of the remaining amount?
Solution: The reverse of Deferrals is done automatically when you create Debit Note based on the Invoice Received. But if the Deferred Expense has been always recognized with the Month and Closing tool and the recognized amount exceeds the refund amount you need to create Reversal Entry (Other Expense documents) and Register Correction before creating the Debit Note.
Suppose you have the 10,000 AED Rent Service that has been deferred for 10 months, 6000 AED has been already recognized:
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