Not Sure if this is the correct Channel or not, but I am going to ask anyways. We have a situation where 4 Containers from a Vendor got declined by Customs and sent back to the Vendor. But we already created the Inbound Shipments, marked them in Transit and took Ownership of them, and also created the Vendor Bills and Paid the Vendor. But now our Accounting Dept wants to correct this. Has anyone every had this issue and figured out a way to undo everything without messing up GL's, COGS. This is a 1 time thing that we need to get fixed, but we are struggling with figuring out the least impactful way to do it.

Is the receipt still expected to happen in the future?

No, there are new IN SHIP records and new bills

Delete the inbound transaction’s. Your freight insurance should take ownership not you until you physical receive or drop ship.