If you are reporting Interest income on an instrument like a bond that had accrued interest at the time you purchased, then yes, you would reduce your interest income by the accrued interest at your purchase date. Enter the full amount of the interest, and then enter the Accrued Interest paid as an adjustment to reduce it.
When you see the screen "Do any of these uncommon situations apply?", check the box that says" I need to adjust the interest reported on my form". Read the Learn More link that appears, and enter the adjustment in the box provided.
Any amount of accrued interest you cannot deduct can be carried forward to the next accrual period. If this is your situation keep your records to record the amount later that you were unable to use in 2023.
See this thread and this one for more discussion and examples.
See here for more information from the IRS on this topic.
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