Split transaction between Invoices and Payments

karisimm

I have a subcontractor that is a vendor as well as a customer. I owed him money for a bill and he owed me money for a couple invoices. I paid him what I owed him (the bill) less the amount he owed me (two invoices). However when I try to split the withdrawal transaction I don't have the option to record his payment to me for the open invoices. It appears all I can do is record that portion of the split as a Refund on those invoices. But I think that will reduce my Sales amount on my P&L, which is not what I want. Is there another way?