QuickBooks: Credit Vendor With Open Invoices

This is for a customer that is also a vendor (same business name), and you have a bill from  them but they also have open invoices that are due.  

The bill that you owe them is more than what they owe you - invoices.

The correct way to reduce the amount of the bill you owe them with the amount they owe you from invoices is as follows:

• Create a bank account called "Clearing"
• Receive payment of the invoice and deposit to the "Clearing" bank
• In pay bills, pay a portion of the bill from th "Clearing"  account in that amount
• Make the "Clearing" account inactive until you need it again.