A loan Disbursement can be deleted as long as there are no repayments that have been made on the loan. In case there are repayments on the loan, then all corresponding repayments have to be deleted at Loans/Delete Loan Entries/Delete Repayment before the loan disbursement can be available for deletion.
How to Delete Loan Disbursement?
To Delete Loan Disbursement you go to Loans/Delete Loan Entries/Delete Loan Disbursement. A screen like one below appears:
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