diff --git a/app/api/invoices/[id]/mark-paid/__tests__/route.test.ts b/app/api/invoices/[id]/mark-paid/__tests__/route.test.ts
index 667d22ea..baba81d1 100644
--- a/app/api/invoices/[id]/mark-paid/__tests__/route.test.ts
+++ b/app/api/invoices/[id]/mark-paid/__tests__/route.test.ts
@@ -140,7 +140,8 @@ describe('POST /api/invoices/[id]/mark-paid', () => {
       'user-1',
       expect.objectContaining({ id: 'inv-1' }),
       expect.any(String),
-      undefined
+      undefined,
+      expect.anything()
     )
   })
 
@@ -174,7 +175,8 @@ describe('POST /api/invoices/[id]/mark-paid', () => {
       'user-1',
       expect.objectContaining({ id: 'inv-1' }),
       expect.any(String),
-      'enskild_firma'
+      'enskild_firma',
+      expect.anything()
     )
   })
 
diff --git a/app/api/invoices/[id]/mark-paid/route.ts b/app/api/invoices/[id]/mark-paid/route.ts
index 6f0e4bdd..a2f57ab0 100644
--- a/app/api/invoices/[id]/mark-paid/route.ts
+++ b/app/api/invoices/[id]/mark-paid/route.ts
@@ -118,7 +118,9 @@ export async function POST(
         const input: CreateJournalEntryInput = {
           fiscal_period_id: fiscalPeriodId,
           entry_date: paymentDate,
-          description: `Betalning faktura ${invoice.invoice_number}`,
+          description: invoice.customer?.name
+            ? `Inbetalning kundfaktura ${invoice.invoice_number}, ${invoice.customer.name}`
+            : `Inbetalning kundfaktura ${invoice.invoice_number}`,
           source_type: sourceType,
           source_id: invoice.id,
           lines: customLines,
@@ -132,7 +134,8 @@ export async function POST(
           user.id,
           invoice as Invoice,
           paymentDate,
-          exchangeRateDifference
+          exchangeRateDifference,
+          invoice.customer?.name
         )
         journalEntryId = journalEntry?.id ?? null
       } else {
@@ -142,7 +145,8 @@ export async function POST(
           user.id,
           invoice as Invoice,
           paymentDate,
-          entityType
+          entityType,
+          invoice.customer?.name
         )
         journalEntryId = journalEntry?.id ?? null
       }
diff --git a/app/api/invoices/[id]/mark-sent/route.ts b/app/api/invoices/[id]/mark-sent/route.ts
index fe501782..6a5f4978 100644
--- a/app/api/invoices/[id]/mark-sent/route.ts
+++ b/app/api/invoices/[id]/mark-sent/route.ts
@@ -74,7 +74,8 @@ export async function POST(
         supabase,
         user.id,
         invoice as Invoice,
-        (settings?.entity_type as EntityType) || 'enskild_firma'
+        (settings?.entity_type as EntityType) || 'enskild_firma',
+        invoice.customer?.name
       )
       if (journalEntry) {
         journalEntryId = journalEntry.id
diff --git a/app/api/invoices/route.ts b/app/api/invoices/route.ts
index 90fd3023..4724621f 100644
--- a/app/api/invoices/route.ts
+++ b/app/api/invoices/route.ts
@@ -387,7 +387,8 @@ async function createCreditNote(
         supabase,
         userId,
         completeCreditNote as Invoice,
-        entityType
+        entityType,
+        completeCreditNote.customer?.name
       )
       if (journalEntry) {
         await supabase
diff --git a/app/api/supplier-invoices/[id]/credit/route.ts b/app/api/supplier-invoices/[id]/credit/route.ts
index bb7b5aba..43989e3a 100644
--- a/app/api/supplier-invoices/[id]/credit/route.ts
+++ b/app/api/supplier-invoices/[id]/credit/route.ts
@@ -111,7 +111,8 @@ export async function POST(
         user.id,
         creditNote as SupplierInvoice,
         creditItems as SupplierInvoiceItem[],
-        original.supplier?.supplier_type || 'swedish_business'
+        original.supplier?.supplier_type || 'swedish_business',
+        original.supplier?.name
       )
       if (journalEntry) {
         journalEntryId = journalEntry.id
diff --git a/app/api/supplier-invoices/[id]/mark-paid/route.ts b/app/api/supplier-invoices/[id]/mark-paid/route.ts
index 2efbf4f6..c9b0b184 100644
--- a/app/api/supplier-invoices/[id]/mark-paid/route.ts
+++ b/app/api/supplier-invoices/[id]/mark-paid/route.ts
@@ -72,7 +72,8 @@ export async function POST(
         invoice as SupplierInvoice,
         (invoice.items || []) as SupplierInvoiceItem[],
         paymentDate,
-        invoice.supplier?.supplier_type || 'swedish_business'
+        invoice.supplier?.supplier_type || 'swedish_business',
+        invoice.supplier?.name
       )
       if (journalEntry) journalEntryId = journalEntry.id
     } else {
@@ -82,7 +83,8 @@ export async function POST(
         invoice as SupplierInvoice,
         paymentAmount,
         paymentDate,
-        body.exchange_rate_difference
+        body.exchange_rate_difference,
+        invoice.supplier?.name
       )
       if (journalEntry) journalEntryId = journalEntry.id
     }
diff --git a/app/api/supplier-invoices/route.ts b/app/api/supplier-invoices/route.ts
index 26474f26..38648586 100644
--- a/app/api/supplier-invoices/route.ts
+++ b/app/api/supplier-invoices/route.ts
@@ -172,7 +172,8 @@ export async function POST(request: Request) {
         user.id,
         invoice as SupplierInvoice,
         items as SupplierInvoiceItem[],
-        supplier.supplier_type
+        supplier.supplier_type,
+        supplier.name
       )
       if (journalEntry) {
         registrationJournalEntryId = journalEntry.id
diff --git a/app/api/transactions/[id]/match-invoice/__tests__/route.test.ts b/app/api/transactions/[id]/match-invoice/__tests__/route.test.ts
index b7836644..c7882785 100644
--- a/app/api/transactions/[id]/match-invoice/__tests__/route.test.ts
+++ b/app/api/transactions/[id]/match-invoice/__tests__/route.test.ts
@@ -190,7 +190,9 @@ describe('POST /api/transactions/[id]/match-invoice', () => {
       expect.anything(),
       'user-1',
       expect.objectContaining({ id: VALID_UUID }),
-      '2024-06-15'
+      '2024-06-15',
+      undefined,
+      expect.anything()
     )
   })
 
diff --git a/app/api/transactions/[id]/match-invoice/route.ts b/app/api/transactions/[id]/match-invoice/route.ts
index 3ae526fb..06dbcfa0 100644
--- a/app/api/transactions/[id]/match-invoice/route.ts
+++ b/app/api/transactions/[id]/match-invoice/route.ts
@@ -110,7 +110,8 @@ export async function POST(
         user.id,
         invoice as Invoice,
         transaction.date,
-        entityType
+        entityType,
+        invoice.customer?.name
       )
       journalEntryId = journalEntry?.id ?? null
     } else {
@@ -119,7 +120,9 @@ export async function POST(
         supabase,
         user.id,
         invoice as Invoice,
-        transaction.date
+        transaction.date,
+        undefined,
+        invoice.customer?.name
       )
       journalEntryId = journalEntry?.id ?? null
     }
diff --git a/lib/bookkeeping/__tests__/engine.test.ts b/lib/bookkeeping/__tests__/engine.test.ts
index c53804ab..0a5ed5bb 100644
--- a/lib/bookkeeping/__tests__/engine.test.ts
+++ b/lib/bookkeeping/__tests__/engine.test.ts
@@ -1,6 +1,29 @@
-import { describe, it, expect } from 'vitest'
-import { validateBalance, getSwedishLocalDate } from '../engine'
-import type { CreateJournalEntryLineInput } from '@/types'
+import { describe, it, expect, vi, beforeEach } from 'vitest'
+import { validateBalance, getSwedishLocalDate, createDraftEntry, reverseEntry } from '../engine'
+import type { CreateJournalEntryLineInput, JournalEntryStatus } from '@/types'
+
+// Mock Supabase client for createDraftEntry/reverseEntry tests
+function createMockChain(overrides: Record<string, unknown> = {}) {
+  const chain: Record<string, unknown> = {
+    select: vi.fn().mockReturnThis(),
+    single: vi.fn().mockResolvedValue({ data: overrides.singleData ?? null, error: overrides.singleError ?? null }),
+    eq: vi.fn().mockReturnThis(),
+    insert: vi.fn().mockReturnThis(),
+    update: vi.fn().mockReturnThis(),
+    delete: vi.fn().mockReturnThis(),
+    in: vi.fn().mockReturnThis(),
+    lte: vi.fn().mockReturnThis(),
+    gte: vi.fn().mockReturnThis(),
+    order: vi.fn().mockReturnThis(),
+    limit: vi.fn().mockReturnThis(),
+  }
+  return chain
+}
+
+// Mock event bus
+vi.mock('@/lib/events', () => ({
+  eventBus: { emit: vi.fn().mockResolvedValue([]) },
+}))
 
 describe('validateBalance', () => {
   it('balanced entry (debit == credit) → valid: true', () => {
@@ -75,3 +98,69 @@ describe('getSwedishLocalDate', () => {
     expect(parsed.toString()).not.toBe('Invalid Date')
   })
 })
+
+describe('createDraftEntry — cancelled status on line-insert failure', () => {
+  it('sets status to cancelled (not delete) when line insert fails', async () => {
+    const updateMock = vi.fn().mockReturnValue({ eq: vi.fn().mockResolvedValue({ error: null }) })
+
+    const supabase = {
+      from: vi.fn().mockImplementation((table: string) => {
+        if (table === 'journal_entries') {
+          return {
+            insert: vi.fn().mockReturnValue({
+              select: vi.fn().mockReturnValue({
+                single: vi.fn().mockResolvedValue({
+                  data: { id: 'entry-1', user_id: 'user-1', status: 'draft' as JournalEntryStatus },
+                  error: null,
+                }),
+              }),
+            }),
+            update: updateMock,
+            delete: vi.fn().mockReturnValue({ eq: vi.fn().mockResolvedValue({ error: null }) }),
+          }
+        }
+        if (table === 'journal_entry_lines') {
+          return {
+            insert: vi.fn().mockResolvedValue({ error: { message: 'Line insert failed' } }),
+          }
+        }
+        if (table === 'chart_of_accounts') {
+          return {
+            select: vi.fn().mockReturnValue({
+              eq: vi.fn().mockReturnValue({
+                in: vi.fn().mockResolvedValue({
+                  data: [{ account_number: '1930', id: 'acc-1' }, { account_number: '3001', id: 'acc-2' }],
+                  error: null,
+                }),
+              }),
+            }),
+          }
+        }
+        return createMockChain()
+      }),
+    }
+
+    await expect(
+      createDraftEntry(supabase as never, 'user-1', {
+        fiscal_period_id: 'period-1',
+        entry_date: '2024-01-01',
+        description: 'Test',
+        source_type: 'manual',
+        lines: [
+          { account_number: '1930', debit_amount: 1000, credit_amount: 0 },
+          { account_number: '3001', debit_amount: 0, credit_amount: 1000 },
+        ],
+      })
+    ).rejects.toThrow('Failed to create journal entry lines')
+
+    // Should call update with cancelled status, NOT delete
+    expect(updateMock).toHaveBeenCalledWith({ status: 'cancelled' })
+  })
+})
+
+describe('JournalEntryStatus type includes cancelled', () => {
+  it('cancelled is a valid JournalEntryStatus value', () => {
+    const status: JournalEntryStatus = 'cancelled'
+    expect(['draft', 'posted', 'reversed', 'cancelled']).toContain(status)
+  })
+})
diff --git a/lib/bookkeeping/__tests__/invoice-entries.test.ts b/lib/bookkeeping/__tests__/invoice-entries.test.ts
index 582a09d2..46ab5bab 100644
--- a/lib/bookkeeping/__tests__/invoice-entries.test.ts
+++ b/lib/bookkeeping/__tests__/invoice-entries.test.ts
@@ -490,6 +490,89 @@ describe('createInvoiceJournalEntry — EUR foreign currency', () => {
   })
 })
 
+describe('BFL-compliant descriptions with counterparty names', () => {
+  beforeEach(() => {
+    vi.clearAllMocks()
+  })
+
+  it('createInvoiceJournalEntry includes customer name in description', async () => {
+    const invoice = makeInvoice({
+      items: [makeItem()],
+    })
+
+    await createInvoiceJournalEntry(null as never, 'user-1', invoice, 'enskild_firma', 'Foretag AB')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kundfaktura 1001, Foretag AB')
+  })
+
+  it('createInvoiceJournalEntry falls back without customer name', async () => {
+    const invoice = makeInvoice({
+      items: [makeItem()],
+    })
+
+    await createInvoiceJournalEntry(null as never, 'user-1', invoice, 'enskild_firma')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kundfaktura 1001')
+  })
+
+  it('createInvoicePaymentJournalEntry includes customer name', async () => {
+    const invoice = makeInvoice({ total: 1250 })
+
+    await createInvoicePaymentJournalEntry(null as never, 'user-1', invoice, '2024-07-15', undefined, 'Foretag AB')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Inbetalning kundfaktura 1001, Foretag AB')
+  })
+
+  it('createInvoicePaymentJournalEntry falls back without customer name', async () => {
+    const invoice = makeInvoice({ total: 1250 })
+
+    await createInvoicePaymentJournalEntry(null as never, 'user-1', invoice, '2024-07-15')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Inbetalning kundfaktura 1001')
+  })
+
+  it('createCreditNoteJournalEntry includes customer name', async () => {
+    const creditNote = makeInvoice({
+      invoice_number: 'KR-1001',
+      subtotal: -1000,
+      vat_amount: -250,
+      total: -1250,
+      items: [makeItem({ quantity: -1, line_total: -1000, vat_amount: -250 })],
+    })
+
+    await createCreditNoteJournalEntry(null as never, 'user-1', creditNote, 'enskild_firma', 'Foretag AB')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kreditfaktura KR-1001, Foretag AB')
+  })
+
+  it('createInvoiceCashEntry includes customer name', async () => {
+    const invoice = makeInvoice({
+      items: [makeItem()],
+    })
+
+    await createInvoiceCashEntry(null as never, 'user-1', invoice, '2024-07-01', 'enskild_firma', 'Foretag AB')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kontantbetalning kundfaktura 1001, Foretag AB')
+  })
+
+  it('createInvoiceCashEntry falls back without customer name', async () => {
+    const invoice = makeInvoice({
+      items: [makeItem()],
+    })
+
+    await createInvoiceCashEntry(null as never, 'user-1', invoice, '2024-07-01', 'enskild_firma')
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kontantbetalning kundfaktura 1001')
+  })
+})
+
 describe('createInvoicePaymentJournalEntry — exchange rate difference', () => {
   beforeEach(() => {
     vi.clearAllMocks()
diff --git a/lib/bookkeeping/__tests__/supplier-invoice-entries.test.ts b/lib/bookkeeping/__tests__/supplier-invoice-entries.test.ts
index 0e98501d..604e0e6e 100644
--- a/lib/bookkeeping/__tests__/supplier-invoice-entries.test.ts
+++ b/lib/bookkeeping/__tests__/supplier-invoice-entries.test.ts
@@ -368,6 +368,36 @@ describe('createSupplierInvoiceRegistrationEntry', () => {
     expect(input.description).toContain('42')
   })
 
+  it('description includes supplier name when provided', async () => {
+    const invoice = makeSupplierInvoice({
+      supplier_invoice_number: 'LF-100',
+      arrival_number: 5,
+    })
+    const items = [makeItem()]
+
+    await createSupplierInvoiceRegistrationEntry(
+      null as never, 'user-1', invoice, items, 'swedish_business', 'Leverantör AB'
+    )
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Leverantörsfaktura LF-100, Leverantör AB (ankomst 5)')
+  })
+
+  it('description falls back without supplier name', async () => {
+    const invoice = makeSupplierInvoice({
+      supplier_invoice_number: 'LF-100',
+      arrival_number: 5,
+    })
+    const items = [makeItem()]
+
+    await createSupplierInvoiceRegistrationEntry(
+      null as never, 'user-1', invoice, items, 'swedish_business'
+    )
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Leverantörsfaktura LF-100 (ankomst 5)')
+  })
+
   it('handles non-EU reverse charge (services)', async () => {
     const invoice = makeSupplierInvoice({
       subtotal: 5000,
@@ -553,6 +583,20 @@ describe('createSupplierInvoicePaymentEntry', () => {
     expect(input.source_id).toBe('si-pay-1')
   })
 
+  it('description includes supplier name when provided', async () => {
+    const invoice = makeSupplierInvoice({
+      supplier_invoice_number: 'LF-200',
+      arrival_number: 10,
+    })
+
+    await createSupplierInvoicePaymentEntry(
+      null as never, 'user-1', invoice, 10000, '2024-07-01', undefined, 'Leverantör AB'
+    )
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Utbetalning leverantörsfaktura LF-200, Leverantör AB (ankomst 10)')
+  })
+
   it('uses paymentDate not invoice_date as entry_date', async () => {
     const invoice = makeSupplierInvoice({ invoice_date: '2024-06-01' })
 
@@ -705,8 +749,20 @@ describe('createSupplierInvoiceCashEntry', () => {
     expect(input.source_id).toBe('si-cash-1')
   })
 
-  it('description contains "kontantmetoden"', async () => {
-    const invoice = makeSupplierInvoice()
+  it('description includes supplier name when provided', async () => {
+    const invoice = makeSupplierInvoice({ supplier_invoice_number: 'LF-300' })
+    const items = [makeItem()]
+
+    await createSupplierInvoiceCashEntry(
+      null as never, 'user-1', invoice, items, '2024-07-01', 'swedish_business', 'Leverantör AB'
+    )
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kontantbetalning leverantörsfaktura LF-300, Leverantör AB')
+  })
+
+  it('description falls back without supplier name', async () => {
+    const invoice = makeSupplierInvoice({ supplier_invoice_number: 'LF-300' })
     const items = [makeItem()]
 
     await createSupplierInvoiceCashEntry(
@@ -714,7 +770,7 @@ describe('createSupplierInvoiceCashEntry', () => {
     )
 
     const input = mockedCreateEntry.mock.calls[0][2]
-    expect(input.description).toContain('kontantmetoden')
+    expect(input.description).toBe('Kontantbetalning leverantörsfaktura LF-300')
   })
 })
 
@@ -862,6 +918,24 @@ describe('createSupplierCreditNoteEntry', () => {
     expect(input.lines[0].account_number).toBe('2440')
   })
 
+  it('description includes supplier name when provided', async () => {
+    const creditNote = makeSupplierInvoice({
+      is_credit_note: true,
+      supplier_invoice_number: 'LF-400',
+      arrival_number: 7,
+      total: -10000,
+      vat_amount: -2000,
+    })
+    const items = [makeItem({ line_total: -8000, account_number: '6200', vat_rate: 0.25 })]
+
+    await createSupplierCreditNoteEntry(
+      null as never, 'user-1', creditNote, items, 'swedish_business', 'Leverantör AB'
+    )
+
+    const input = mockedCreateEntry.mock.calls[0][2]
+    expect(input.description).toBe('Kreditfaktura leverantör LF-400, Leverantör AB (ankomst 7)')
+  })
+
   it('sets source_type to supplier_credit_note', async () => {
     const creditNote = makeSupplierInvoice({ id: 'si-cn-1', is_credit_note: true })
     const items = [makeItem()]
diff --git a/lib/bookkeeping/engine.ts b/lib/bookkeeping/engine.ts
index 4d58d980..85b079fd 100644
--- a/lib/bookkeeping/engine.ts
+++ b/lib/bookkeeping/engine.ts
@@ -184,7 +184,7 @@ export async function createDraftEntry(
     .insert(lineInserts)
 
   if (linesError) {
-    await supabase.from('journal_entries').delete().eq('id', entry.id)
+    await supabase.from('journal_entries').update({ status: 'cancelled' }).eq('id', entry.id)
     throw new Error(`Failed to create journal entry lines: ${linesError.message}`)
   }
 
@@ -378,7 +378,7 @@ export async function reverseEntry(
     .insert(lineInserts)
 
   if (linesError) {
-    await supabase.from('journal_entries').delete().eq('id', reversalEntry.id)
+    await supabase.from('journal_entries').update({ status: 'cancelled' }).eq('id', reversalEntry.id)
     throw new Error(`Failed to create reversal lines: ${linesError.message}`)
   }
 
@@ -389,8 +389,7 @@ export async function reverseEntry(
     .eq('id', reversalEntry.id)
 
   if (postError) {
-    await supabase.from('journal_entry_lines').delete().eq('journal_entry_id', reversalEntry.id)
-    await supabase.from('journal_entries').delete().eq('id', reversalEntry.id)
+    await supabase.from('journal_entries').update({ status: 'cancelled' }).eq('id', reversalEntry.id)
     throw new Error(`Failed to post reversal entry: ${postError.message}`)
   }
 
@@ -406,9 +405,9 @@ export async function reverseEntry(
     .select('id')
 
   if (casError || !updatedOriginal || updatedOriginal.length === 0) {
-    // Another concurrent reversal already changed the status — roll back our reversal
-    await supabase.from('journal_entry_lines').delete().eq('journal_entry_id', reversalEntry.id)
-    await supabase.from('journal_entries').delete().eq('id', reversalEntry.id)
+    // Another concurrent reversal already changed the status — mark the orphaned
+    // reversal as cancelled so it's excluded from reports but remains traceable.
+    await supabase.from('journal_entries').update({ status: 'cancelled' }).eq('id', reversalEntry.id)
     throw new Error('Entry was already reversed by a concurrent operation')
   }
 
diff --git a/lib/bookkeeping/invoice-entries.ts b/lib/bookkeeping/invoice-entries.ts
index 666d8ae2..5de2e17f 100644
--- a/lib/bookkeeping/invoice-entries.ts
+++ b/lib/bookkeeping/invoice-entries.ts
@@ -16,6 +16,18 @@ import type {
 
 const log = createLogger('invoice-entries')
 
+/**
+ * Build a BFL-compliant verifikation description with event type and counterparty.
+ * Falls back to prefix + invoiceNumber if name is not provided (backward compat).
+ */
+function buildInvoiceDescription(
+  prefix: string, invoiceNumber: string, counterpartyName?: string
+): string {
+  return counterpartyName
+    ? `${prefix} ${invoiceNumber}, ${counterpartyName}`
+    : `${prefix} ${invoiceNumber}`
+}
+
 /**
  * Group invoice items by VAT rate and generate per-rate revenue + VAT lines.
  * Returns credit lines only (revenue + VAT). The caller adds the debit side.
@@ -142,7 +154,8 @@ export async function createInvoiceJournalEntry(
   supabase: SupabaseClient,
   userId: string,
   invoice: Invoice,
-  entityType: EntityType = 'enskild_firma'
+  entityType: EntityType = 'enskild_firma',
+  customerName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, invoice.invoice_date)
   if (!fiscalPeriodId) {
@@ -213,7 +226,7 @@ export async function createInvoiceJournalEntry(
   const input: CreateJournalEntryInput = {
     fiscal_period_id: fiscalPeriodId,
     entry_date: invoice.invoice_date,
-    description: `Faktura ${invoice.invoice_number}`,
+    description: buildInvoiceDescription('Kundfaktura', invoice.invoice_number, customerName),
     source_type: 'invoice_created',
     source_id: invoice.id,
     lines,
@@ -233,7 +246,8 @@ export async function createInvoicePaymentJournalEntry(
   userId: string,
   invoice: Invoice,
   paymentDate: string,
-  exchangeRateDifference?: number
+  exchangeRateDifference?: number,
+  customerName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, paymentDate)
   if (!fiscalPeriodId) {
@@ -241,7 +255,7 @@ export async function createInvoicePaymentJournalEntry(
     return null
   }
 
-  const desc = `Betalning faktura ${invoice.invoice_number}`
+  const desc = buildInvoiceDescription('Inbetalning kundfaktura', invoice.invoice_number, customerName)
   const bookedSekAmount = resolveSekAmount(invoice.total, invoice.total_sek, invoice.currency, invoice.exchange_rate)
   const lines: CreateJournalEntryLineInput[] = []
 
@@ -326,7 +340,8 @@ export async function createCreditNoteJournalEntry(
   supabase: SupabaseClient,
   userId: string,
   creditNote: Invoice,
-  entityType: EntityType = 'enskild_firma'
+  entityType: EntityType = 'enskild_firma',
+  customerName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, creditNote.invoice_date)
   if (!fiscalPeriodId) {
@@ -391,7 +406,7 @@ export async function createCreditNoteJournalEntry(
   const input: CreateJournalEntryInput = {
     fiscal_period_id: fiscalPeriodId,
     entry_date: creditNote.invoice_date,
-    description: `Kreditfaktura ${creditNote.invoice_number}`,
+    description: buildInvoiceDescription('Kreditfaktura', creditNote.invoice_number, customerName),
     source_type: 'credit_note',
     source_id: creditNote.id,
     lines,
@@ -413,7 +428,8 @@ export async function createInvoiceCashEntry(
   userId: string,
   invoice: Invoice,
   paymentDate: string,
-  entityType: EntityType = 'enskild_firma'
+  entityType: EntityType = 'enskild_firma',
+  customerName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, paymentDate)
   if (!fiscalPeriodId) {
@@ -462,7 +478,7 @@ export async function createInvoiceCashEntry(
     account_number: '1930',
     debit_amount: isForeign ? Math.round(totalCredits * 100) / 100 : resolveSekAmount(invoice.total, invoice.total_sek, invoice.currency, invoice.exchange_rate),
     credit_amount: 0,
-    line_description: `Betalning faktura ${invoice.invoice_number}`,
+    line_description: buildInvoiceDescription('Kontantbetalning kundfaktura', invoice.invoice_number, customerName),
   })
 
   lines.push(...creditLines)
@@ -470,7 +486,7 @@ export async function createInvoiceCashEntry(
   const input: CreateJournalEntryInput = {
     fiscal_period_id: fiscalPeriodId,
     entry_date: paymentDate,
-    description: `Betalning faktura ${invoice.invoice_number} (kontantmetoden)`,
+    description: buildInvoiceDescription('Kontantbetalning kundfaktura', invoice.invoice_number, customerName),
     source_type: 'invoice_cash_payment',
     source_id: invoice.id,
     lines,
diff --git a/lib/bookkeeping/supplier-invoice-entries.ts b/lib/bookkeeping/supplier-invoice-entries.ts
index d655a11f..9f95e053 100644
--- a/lib/bookkeeping/supplier-invoice-entries.ts
+++ b/lib/bookkeeping/supplier-invoice-entries.ts
@@ -13,6 +13,19 @@ import type {
 
 const log = createLogger('supplier-invoice-entries')
 
+/**
+ * Build a BFL-compliant verifikation description with event type, counterparty, and suffix.
+ * Falls back to prefix + invoiceNumber + suffix if name is not provided (backward compat).
+ */
+function buildSupplierDescription(
+  prefix: string, invoiceNumber: string, supplierName?: string, suffix?: string
+): string {
+  const base = supplierName
+    ? `${prefix} ${invoiceNumber}, ${supplierName}`
+    : `${prefix} ${invoiceNumber}`
+  return suffix ? `${base} ${suffix}` : base
+}
+
 /**
  * Create journal entry when a supplier invoice is registered (accrual method)
  *
@@ -35,7 +48,8 @@ export async function createSupplierInvoiceRegistrationEntry(
   userId: string,
   invoice: SupplierInvoice,
   items: SupplierInvoiceItem[],
-  supplierType: string
+  supplierType: string,
+  supplierName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, invoice.invoice_date)
   if (!fiscalPeriodId) {
@@ -44,7 +58,7 @@ export async function createSupplierInvoiceRegistrationEntry(
   }
 
   const lines: CreateJournalEntryLineInput[] = []
-  const desc = `Lev.faktura ${invoice.supplier_invoice_number} (ankomst ${invoice.arrival_number})`
+  const desc = buildSupplierDescription('Leverantörsfaktura', invoice.supplier_invoice_number, supplierName, `(ankomst ${invoice.arrival_number})`)
   const isForeign = invoice.currency !== 'SEK'
 
   // Aggregate expense amounts by account number and convert to SEK
@@ -134,7 +148,8 @@ export async function createSupplierInvoicePaymentEntry(
   invoice: SupplierInvoice,
   paymentAmount: number,
   paymentDate: string,
-  exchangeRateDifference?: number
+  exchangeRateDifference?: number,
+  supplierName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, paymentDate)
   if (!fiscalPeriodId) {
@@ -142,7 +157,7 @@ export async function createSupplierInvoicePaymentEntry(
     return null
   }
 
-  const desc = `Betalning lev.faktura ${invoice.supplier_invoice_number} (ankomst ${invoice.arrival_number})`
+  const desc = buildSupplierDescription('Utbetalning leverantörsfaktura', invoice.supplier_invoice_number, supplierName, `(ankomst ${invoice.arrival_number})`)
   const lines: CreateJournalEntryLineInput[] = []
 
   if (exchangeRateDifference && exchangeRateDifference !== 0) {
@@ -227,7 +242,8 @@ export async function createSupplierInvoiceCashEntry(
   invoice: SupplierInvoice,
   items: SupplierInvoiceItem[],
   paymentDate: string,
-  supplierType: string
+  supplierType: string,
+  supplierName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, paymentDate)
   if (!fiscalPeriodId) {
@@ -235,7 +251,7 @@ export async function createSupplierInvoiceCashEntry(
     return null
   }
 
-  const desc = `Betalning lev.faktura ${invoice.supplier_invoice_number} (kontantmetoden)`
+  const desc = buildSupplierDescription('Kontantbetalning leverantörsfaktura', invoice.supplier_invoice_number, supplierName)
   const lines: CreateJournalEntryLineInput[] = []
 
   // Aggregate expense amounts by account number and convert to SEK
@@ -317,7 +333,8 @@ export async function createSupplierCreditNoteEntry(
   userId: string,
   creditNote: SupplierInvoice,
   items: SupplierInvoiceItem[],
-  supplierType: string
+  supplierType: string,
+  supplierName?: string
 ): Promise<JournalEntry | null> {
   const fiscalPeriodId = await findFiscalPeriod(supabase, userId, creditNote.invoice_date)
   if (!fiscalPeriodId) {
@@ -325,7 +342,7 @@ export async function createSupplierCreditNoteEntry(
     return null
   }
 
-  const desc = `Kreditfaktura lev. ${creditNote.supplier_invoice_number} (ankomst ${creditNote.arrival_number})`
+  const desc = buildSupplierDescription('Kreditfaktura leverantör', creditNote.supplier_invoice_number, supplierName, `(ankomst ${creditNote.arrival_number})`)
   const lines: CreateJournalEntryLineInput[] = []
 
   // Credit: Expense accounts (reverse, in SEK)
diff --git a/lib/reports/vat-declaration.ts b/lib/reports/vat-declaration.ts
index 40076476..4f20347b 100644
--- a/lib/reports/vat-declaration.ts
+++ b/lib/reports/vat-declaration.ts
@@ -285,6 +285,7 @@ async function calculateReverseChargeBases(
   const supplierSourceTypes = [
     'supplier_invoice_registered',
     'supplier_invoice_cash_payment',
+    'supplier_credit_note',
   ]
   const entries = await fetchAllRows<{
     id: string
diff --git a/supabase/migrations/20260319000001_add_cancelled_journal_status.sql b/supabase/migrations/20260319000001_add_cancelled_journal_status.sql
new file mode 100644
index 00000000..17042d2d
--- /dev/null
+++ b/supabase/migrations/20260319000001_add_cancelled_journal_status.sql
@@ -0,0 +1,65 @@
+-- Add 'cancelled' status to journal entries for BFL varaktighet compliance.
+-- Once a row is inserted into journal_entries, it must remain traceable.
+-- Application code uses status='cancelled' instead of DELETE.
+
+-- 1. Expand status CHECK to include 'cancelled'
+ALTER TABLE public.journal_entries
+  DROP CONSTRAINT IF EXISTS journal_entries_status_check;
+ALTER TABLE public.journal_entries
+  ADD CONSTRAINT journal_entries_status_check
+  CHECK (status IN ('draft', 'posted', 'reversed', 'cancelled'));
+
+-- 2. Update immutability trigger: block all DELETEs, allow draft->cancelled
+CREATE OR REPLACE FUNCTION public.enforce_journal_entry_immutability()
+RETURNS trigger LANGUAGE plpgsql AS $$
+BEGIN
+  IF TG_OP = 'DELETE' THEN
+    -- No exemption for drafts: varaktighet applies from insertion.
+    -- Application code uses status='cancelled' instead of DELETE.
+    RAISE EXCEPTION 'Cannot delete journal entries (id: %, status: %). Use cancelled status instead.',
+      OLD.id, OLD.status;
+  END IF;
+
+  -- Draft can transition to draft (update fields), posted, or cancelled
+  IF OLD.status = 'draft' AND NEW.status IN ('draft', 'posted', 'cancelled') THEN
+    RETURN NEW;
+  END IF;
+
+  -- Posted can transition to reversed (storno) or cancelled (orphaned concurrent reversal cleanup)
+  IF OLD.status = 'posted' AND NEW.status IN ('reversed', 'cancelled') THEN
+    IF NEW.status = 'reversed' THEN
+      IF NEW.description != OLD.description OR NEW.entry_date != OLD.entry_date
+         OR NEW.fiscal_period_id != OLD.fiscal_period_id
+         OR NEW.voucher_number != OLD.voucher_number THEN
+        RAISE EXCEPTION 'Cannot modify fields of a posted entry during reversal (id: %)', OLD.id;
+      END IF;
+    END IF;
+    RETURN NEW;
+  END IF;
+
+  RAISE EXCEPTION 'Cannot modify a % journal entry (id: %). Committed entries are immutable per Bokforingslagen.',
+    OLD.status, OLD.id;
+END; $$;
+
+-- 3. Update line immutability: allow operations on cancelled parent entries
+CREATE OR REPLACE FUNCTION public.enforce_journal_entry_line_immutability()
+RETURNS trigger LANGUAGE plpgsql AS $$
+DECLARE v_status text;
+BEGIN
+  SELECT status INTO v_status FROM public.journal_entries
+  WHERE id = COALESCE(OLD.journal_entry_id, NEW.journal_entry_id);
+
+  -- Draft entries: all operations allowed
+  IF v_status = 'draft' THEN
+    IF TG_OP = 'DELETE' THEN RETURN OLD; END IF;
+    RETURN NEW;
+  END IF;
+
+  -- Cancelled entries: only DELETE for cleanup
+  IF v_status = 'cancelled' THEN
+    IF TG_OP = 'DELETE' THEN RETURN OLD; END IF;
+    RAISE EXCEPTION 'Cannot % lines of a cancelled journal entry.', TG_OP;
+  END IF;
+
+  RAISE EXCEPTION 'Cannot % lines of a % journal entry.', TG_OP, v_status;
+END; $$;
diff --git a/types/index.ts b/types/index.ts
index ba0f646a..9a4ff2d3 100644
--- a/types/index.ts
+++ b/types/index.ts
@@ -763,7 +763,7 @@ export type JournalEntrySourceType =
   | 'currency_revaluation'
 
 // Journal entry status
-export type JournalEntryStatus = 'draft' | 'posted' | 'reversed'
+export type JournalEntryStatus = 'draft' | 'posted' | 'reversed' | 'cancelled'
 
 // Mapping rule type
 export type MappingRuleType =