If a vendor asked to issue an invoice towards him, then ask to use the credit to pay vendor's invoice, how can I close the first invoice?

@logistics-donnai 

You have a couple options:

1) If the invoice is recent (current period), you can delete it and enter a vendor credit instead.

2) If the invoice is from a prior, closed period, create a bank account in QB called 'Clearing Account', receive payment on the invoice, and deposit it to the Clearing Account.  Then, create a journal entry to reclassify that to an A/P credit with the vendor - debit A/P and credit the Clearing Account.  You now have the invoice shown as paid (with no actual deposit), a vendor credit for the invoice amount, and the Clearing Account is $0.