To effectively remove the invoice:

1.  Create a credit memo
2.  Apply the credit memo to the invoice.
  • From Accounts Receivable, click Open, Receipts folder, and click Invoice Receipt.
  • In the Receipt Not Saved screen, select the customer.
  • Enter the amount of the outstanding invoice to apply.
  • Enter the amount of the credit memo to apply.  The Payment Total, Applied Total, and Balance at the bottom of the screen should be all zeros.
  • Click Receipt at the top of the screen and click Post.
  • Click Yes, to post and apply the credit memo to the invoice.
  • Click OK.
3.  To remove the zero receipt from the Receipts folder:
  • Highlight the zero receipt and click Deposit.
  • Click Yes to deposit the receipt.
  • Click Yes to confirm you want to deposit the zero receipt.