Hi Lulu,

Your thinking is correct, but I agree with Steve that your accountant should be part of this process.

Indeed if these adjusting entries have already been entered and posted in GL, then you would not want to re-retrieve this adjustments based on crediting the AP invoices. So ensure that if you post credit notes in AP that these entries are not posted in GL. Do your usual processing and retrieve the AP batch to GL. Then do these credit notes and retrieve into GL. This is likely the easiest so that only credit notes are in the batch and yuo don't accidentally delete AP entries that are valid.

As for dates, use 12/31/2007 as you indicated if that will be the date you are trying to reconcile to. Of course this will have no effect on the GL because you will be deleting whatever entries are generated.

You don't have to use any special system dates. Simply ensure that when you enter the credit notes, the document date is Dec 31, 2007.

I suggest making a backup of your AP and GL data prior to posting the credit notes, in case any of the entries did something that you were not expecting.