Hi HomerJ,
If you wish to reset any of the counters (defects, release, cycle), it is recommended to make sure that the previous entities are removed (which I see you plan ion doing) to insure that the counters don't over write others already in use and cause issues. Then you would need to perform the following (I would make sure that you have a backup in place before performing this and it is done at your own risk):

Resetting the defect counter
1. Bring up the Project Administration Utility (Site Administrator).
2. Highlight the desired database to modify.
3. Expand the database to view all the tables by either double-clicking on the database or by clicking on the ''+'' next to the connected database.
4. Click on the Sequences table.
5. Run the following SQL.
UPDATE SEQUENCES
SET SQ_SEQ_VALUE = 0 WHERE SQ_SEQ_NAME = 'BUG'
NOTE : SQ_SEQ_NAME can be Release_cycles for the Cycle ID etc...
6. Click button.
7. Logout of Quality Center, log back in again and check the value.

I hope that helps,
Dan

Hi,

Please delete the defects and try adding the new defect. If you dont, then the error message 'failed to post bug' will be thrown.

to verify whether the SQL code has worked fine, run 'Select * from SEQUENCES' and check the value of Bug field. If it shows 0 then the count has been reset.